November 26, 2019 / 3:11 PM / 10 days ago

CANADA FX DEBT-Canadian dollar sticks to narrow range as railway strike ends

    * Canadian dollar trades nearly unchanged against the
greenback
    * Canadian National Railway and union reach deal to end
strike
    * Loonie trades in a range of 1.3298 to 1.3316
    * Canadian bond prices rise across a flatter yield curve

    TORONTO, Nov 26 (Reuters) - The Canadian dollar was little
changed against the greenback on Tuesday as investors weighed
fresh signs of progress toward a U.S.-China trade deal and a
deal was reached to end a railway strike that threatened to slow
Canada's economic growth.
    Teamsters Canada and Canadian National Railway Co         
said they reached a tentative deal to end a strike at the
country's largest railroad that had entered its eighth day,
disrupting supply chains across the country.             
    Economists estimated that a prolonged strike could have cost
the Canadian economy billions of dollars.
    World stocks          kept record levels in sight after
Beijing said negotiators had reached a "common understanding on
resolving relevant problems", but stopped short of indicating an
agreement was in the offing.                         
    Canada is a major exporter of commodities, including oil, so
its economy could benefit from an improved outlook for global
trade.
    U.S. crude oil futures        were up 0.8% at $58.46 a
barrel.             
    At 9:52 a.m. (1452 GMT), the Canadian dollar          was
trading nearly unchanged at 1.3301 to the greenback, or 75.18
U.S. cents. The currency traded in a narrow range of 1.3298 to
1.3316.
    Last Wednesday, the loonie hit its weakest intraday level
since Oct. 10 at 1.3328. The currency has been pressured since
October by a more dovish stance from the Bank of Canada.
    Clues for the central bank's interest rate outlook could
come on Friday when data for Canada's third quarter gross
domestic product will be released.           
    U.S. House of Representatives Speaker Nancy Pelosi said on
Monday that a version of the U.S.-Mexico-Canada trade agreement
that House Democrats could back was "within range" but that they
needed to conduct a final review.             
    Canada sends about 75% of its exports to the United States. 
  
    Canadian government bond prices were higher across a flatter
yield curve on Tuesday in sympathy with U.S. Treasuries. The
two-year            rose 1.5 Canadian cents to yield 1.575% and
the 10-year             was up 15 Canadian cents to yield
1.446%.

 (Reporting by Fergal Smith
Editing by Nick Zieminski)
  
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