CANADA FX DEBT-Canadian dollar rises ahead of key Bank of Canada surveys

BY Reuters | ECONOMIC | 07/04/22 09:44 AM EDT
       * Canadian dollar strengthens 0.2% against the greenback
    * Loonie trades in a range of 1.2838 to 1.2902
    * Price of U.S. oil rises 1.2%
    * Canadian bond yields ease across curve

    TORONTO, July 4 (Reuters) - The Canadian dollar strengthened
against its U.S. counterpart on Monday as oil prices rose and
investors awaited business and consumer surveys by the Bank of
Canada that could offer clues on the central bank's policy
    The price of oil, one of Canada's major exports, rose as and
concerns of tight supply offset global recession fears.

    U.S. crude        prices rose 1.2% to $109.73 a barrel,
while the Canadian dollar        was trading 0.2% higher at
1.2863 to the greenback, or 77.74 U.S. cents. The currency
traded in a range of 1.2838 to 1.2902.
    Speculators have raised their bullish bets on the Canadian
dollar, data from the U.S. Commodity Futures Trading Commission
showed on Friday. As of June 28, net long positions had
increased to 9,097 contracts from 4,105 in the prior week.
    The U.S. dollar        fell against a basket of major
currencies and world stocks rose on Monday in trade thinned by a
U.S. holiday.
    The Bank of Canada is due to release its quarterly Business
Outlook Survey and Canadian Survey of Consumer Expectations,
including measures of inflation expectations, at 10:30 a.m. ET
(1430 GMT).
    The risk of inflation becoming entrenched in Canada's
economy is growing, say analysts, as surging prices for gas and
other highly visible consumer items undercut efforts by the Bank
of Canada to keep expectations for price increases in check.

    Money markets expect the BoC to raise interest rates by
three-quarters of a percentage point at its next policy decision
on July 13, which would be its biggest hike in 24 years.
    Canadian government bond yields were lower across the curve.
The 10-year             touched its lowest since June 7 at
3.162% before recovering to 3.195%, down 3 basis points on the

 (Reporting by Fergal Smith
Editing by Chizu Nomiyama)

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