Canadian dollar pares weekly decline

The Canadian dollar edged higher against its US counterpart on Friday, reducing this week's decline as investors grew more optimistic on prospects for a trade deal between the United States and China and on the outlook for economic growth. Canada exports many commodities, including oil, so its economy could benefit from improved global growth prospects.

At 4:07 p.m. (2007 GMT), the Canadian dollar was trading 0.1% higher at 1.3144 to the greenback, or 76.08 US cents. The currency, which was down 0.6% for the week, traded in a range of 1.3140 to 1.3196. Investors have raised bullish bets on the loonie to the highest level since December 2017, according to data from the US Commodity Futures Trading Commission and Reuters calculations. As of Oct. 29, net long positions in the currency had climbed to 43,589 contracts from 33,393 in the prior week.

Canadian government bond prices were lower across the yield curve in sympathy with US Treasuries. The two-year fell 7 Canadian cents to yield 1.552% and the 10-year was down 34 Canadian cents to yield 1.448%. On Thursday, the 10-year yield hit a near three-week low intraday at 1.399%.