CANADA FX DEBT-C$ holds steady vs U.S. counterpart, beats rest of G10
(Adds strategist quote and details throughout; updates prices)
*
Trades in a range of 1.3306 to 1.3401
*
Price of U.S. oil settles 4.6% lower
*
Canadian bond yields rise across flatter curve
By Fergal Smith
TORONTO, Nov 17 (Reuters) - The Canadian dollar was little changed against its U.S. counterpart on Thursday, the only G10 currency not to lose ground against the greenback, as Wall Street rebounded from its worst levels of the day.
The loonie was trading nearly unchanged at 1.3325 to the U.S. dollar, or 75.05 U.S. cents, after moving in a range of 1.3306 to 1.3401. On Tuesday, it touched an eight-week high at 1.3225.
"The Canadian dollar has tended to track the S&P 500 more closely than oil prices or (interest) rate differentials in recent months, and we've seen a broad-based recovery in the index this afternoon," said Karl Schamotta, chief market strategist at Corpay.
The S&P 500 clawed back some of its decline after it was pressured earlier in the day by hawkish comments from a U.S. Federal Reserve official and data showing the labor market remained tight.
The U.S. dollar rose against a basket of major currencies and U.S. Treasury yields climbed as investors evaluated how high the Fed will raise interest rates.
The Bank of Canada's policy outlook is also a focus for investors. Data on Wednesday showed that Canada's annual inflation rate held steady in October, leaving markets betting on a smaller interest rate hike at the central bank's next policy decision on Dec. 7.
The price of oil, one of Canada's major exports, settled 4.6% lower at $81.64 a barrel as rising numbers of COVID-19 cases in China weighed on the demand outlook.
Canadian government bond yields were higher across a flatter curve, tracking the move in U.S. Treasuries.
The 10-year rose 3.9 basis points to 3.099% after touching on Wednesday its lowest intraday level in six weeks at 3.036%. (Reporting by Fergal Smith Editing by Nick Zieminski and Deepa Babington)
