CANADA FX DEBT-C$ extends weekly advance as flash economic indicators show gains

BY Reuters | ECONOMIC | 10/23/20 09:28 AM EDT
       * Canadian dollar rises 0.1% against the greenback
    * Advance results for September manufacturing sales show
1.5% rise
    * Loonie climbs 0.5% since the start of the week
    * Canada's 10-year yield touches an 8-week high at 0.680%

    TORONTO, Oct 23 (Reuters) - The Canadian dollar edged higher
against its U.S. counterpart on Friday, as investors welcomed
signs of progress on a U.S. coronavirus relief package and some
domestic economic indicators were estimated to have climbed in
    Canadian manufacturing sales last month most likely rose by
1.5% after falling 2.0% in August, Statistics Canada said in a
flash estimate. A separate flash estimate showed wholesale sales
increasing by 0.4% after rising 0.3% in August.

    Wall Street's main indexes were set for a higher open after
White House Chief of Staff Mark Meadows late on Thursday said
that negotiations with lawmakers on stimulus have entered a new
phase with congressional committee chairs meeting and the two
sides trading technical language.
    Canada sends about 75% of its exports to the United States,
including oil. U.S. crude        prices were up 0.3% at $40.77 a
barrel, supported by the prospect of an extension to OPEC-led
supply curbs.
    The Canadian dollar        was trading 0.1% higher at 1.3118
to the greenback, or 76.23 U.S. cents, having traded in a range
of 1.3109 to 1.3157. For the week, the loonie was on track to
rise 0.5%.
    The U.S. dollar        fell against a basket of major
currencies, including the euro, after data showed Germany's
manufacturing sector expanding at a faster rate.
    The Bank of Canada is due next week to make an interest rate
decision and update its economic outlook. The central bank has
said it will leave interest rates at a record low of 0.25% until
its 2% inflation target is sustainably achieved, which it does
not expect for at least two years.
    Canadian government bond yields were higher across much of a
steeper curve on Friday, with the 10-year             up nearly
1 basis point at 0.667%. It touched its highest intraday level
in eight weeks at 0.680%.

 (Reporting by Fergal Smith; Editing by Andrea Ricci)

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