CANADA FX DEBT-Canadian dollar rallies, boosted by higher commodity prices

 (Adds strategist quotes and details throughout; updates prices)
    * Canadian dollar rises 0.3% against the greenback
    * Price of U.S. oil settles 1.8% higher
    * RBC data shows Canadian consumer spending up 3.1%
    * Canadian bond yields trade mixed across a steeper curve

    By Fergal Smith
    TORONTO, Aug 10 (Reuters) - The Canadian dollar strengthened
against its U.S. counterpart on Monday as commodity prices
climbed and domestic data showed the first annual increase in
consumer spending in five months, adding to evidence of economic
    The loonie        was trading 0.3% higher at 1.3345 to the
greenback, or 74.93 U.S. cents. The currency traded in a range
of 1.3333 to 1.3394.
    "The Canadian dollar is having a really nice day today,"
said Colin Cieszynski, chief market strategist at SIA Wealth
Management. "It is likely due to a rebound in commodity prices."
    Canada is a major producer of commodities, including oil.
U.S. crude futures        settled 1.8% higher at $41.94 a
barrel, supported by an improvement in Chinese factory data,
rising energy demand and hopes for an agreement in the United
States on more coronavirus-related economic stimulus.
    Canadians spent 3.1% more in July than in the same month
last year as more sectors of the economy reopened and the
government continued to provide benefits, RBC's consumer
spending tracking report showed. It was the first month since
February that the report, which uses a proprietary database of
debit and credit card transactions, showed a year-over-year
    On Friday, data for July showed a larger-than-expected jobs
gain and the strongest rate of expansion in purchasing activity
in more than two years.                             
    Mark Carney, a former governor of the Bank of England and
the Bank of Canada, is helping Canadian Prime Minister Justin
Trudeau to craft an economic recovery plan, Bloomberg News
reported on Monday.             
    That could improve investor confidence in Canada because of
Carney's "track record," Cieszynski said.
    Canadian government bond yields were mixed across a steeper
curve. The 10-year             was up 1.6 basis points at
0.495%, having rebounded from its lowest intraday level in more
than four months on July 31 at 0.412%.

 (Reporting by Fergal Smith; Editing by Steve Orlofsky and David

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