CANADA FX DEBT-Canadian dollar dips as oil prices pull back – 2023-10-11

* Canadian dollar weakens 0.1% against the greenback

* Trades in a range of 1.3572 to 1.3623

* Price of U.S. oil settles 2.9% lower

* 10-year yield eases 6.1 basis points

TORONTO, Oct 11 (Reuters) – The Canadian dollar edged
lower against its U.S. counterpart on Wednesday, giving back
some recent gains, as oil prices fell and investors turned
attention to a key U.S. inflation report.

The loonie was trading 0.1% lower at 1.36 to the
greenback, or 73.53 U.S. cents, after moving in a range of
1.3572 to 1.3623.

On Tuesday, it touched its strongest intraday level since
Oct. 2 at 1.3567, supported by a drop in bond yields globally
and higher oil prices after conflict broke out over the weekend
in the Middle East.

“We have seen oil retrace all of Sunday’s opening gap. I
think that’s one of the reasons that CAD is a little weaker
today,” said Erik Bregar, director, FX & precious metals risk
management at Silver Gold Bull.

U.S. crude oil futures settled 2.9% lower at $83.49 a
barrel after top OPEC producer Saudi Arabia pledged to help
stabilize the market.

“Now I think we are just going to consolidate a bit ahead of
CPI tomorrow. That’s the big event risk,” Bregar said.

Thursday’s U.S. inflation data could offer clues on the
outlook for further interest rate hikes by the Federal Reserve.

Domestic data on Wednesday showed that the value of building
permits rose by 3.4% in August from July, clawing back much of
the previous month’s decline.

Canadian government bond yields were mixed across a flatter
curve, tracking moves in U.S. Treasuries. The 10-year
eased 6.1 basis points to 3.942%, extending the
pullback from a 16-year high earlier this month at 4.292%.
(Reporting by Fergal Smith; editing by Jonathan Oatis)