CANADA FX DEBT-C$ notches a 5-month high along with higher oil prices

 (Adds analyst quote and details throughout, updates prices)
    * Canadian dollar rises 0.3% against the greenback
    * Loonie touches its strongest level since Feb. 21 at 1.3230
    * Canada's trade deficit widens to C$3.19 billion in June
    * Canadian bond yields rise across a steeper curve

    By Fergal Smith
    TORONTO, Aug 5 (Reuters) - The Canadian dollar climbed to
its highest in more than five months against its broadly weaker
U.S. counterpart on Wednesday as oil prices rose, but some gains
for the loonie were given back after domestic data showing a
wider trade deficit.
    The loonie        was trading 0.3% higher at 1.3280 to the
greenback, or 75.30 U.S. cents. The currency touched its
strongest intraday level since Feb. 21 at 1.3230.
    "Oil prices, along with the direction of the greenback will
continue to influence the CAD going forward," analysts at Action
Economics, including Ron Simpson, said in web-based commentary.
    The price of oil, one of Canada's major exports, rose to its
highest since early March after a large decline in U.S. crude
inventories.             
    U.S. crude oil futures        settled 1.2% higher at $42.19
a barrel, while the U.S. dollar        extended its recent
decline against a basket of major currencies as investors'
appetite for risk improved on strong corporate earnings and
expectations of more stimulus measures for the pandemic-ravaged
global economy.                                 
    Canada's trade deficit unexpectedly ballooned to C$3.19
billion in June on a surge in motor vehicle and parts imports as
the economy started to reopen, Statistics Canada data indicated.
Analysts had forecast a deficit of C$0.90 billion.              
              
    Canadian government bond yields were higher across a steeper
curve, with the 10-year             up 6.2 basis points at
0.497%. Last Friday, it hit its lowest intraday level in nearly
five months at 0.412%.
    Canada's employment report for July is due on Friday. It
could offer additional evidence of economic recovery after
nearly 1 million jobs were added in June.

 (Reporting by Fergal Smith; editing by Jonathan Oatis)
  

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