The Canadian dollar weakened against its U.S. counterpart on Monday as oil prices slipped and bond yields set a one-week low, with investors awaiting December trade data due on Tuesday for signs of momentum in a nascent export revival.
The loonie, as Canada’s currency is colloquially known, has gained for two straight weeks on a combination of favorable economic data and greenback weakness. Last week it touched its strongest level since September.
At 8:47 a.m. ET (1347 GMT), the Canadian dollar was trading at C$1.3073 to the greenback, or 76.49 U.S. cents, weaker than the Bank of Canada’s official close on Friday of C$1.3028, or 76.76 U.S. cents.
The loonie was trading in a range of C$1.3008 to C$1.3085.
Economists polled by Reuters have a wide range of expectations for Tuesday’s data after Canada achieved its first trade surplus in more than two years in November. The most optimistic see a C$1.5 billion surplus, while the most pessimistic expect a C$1.5 billion deficit. The median view is for a surplus of C$350 million after the surprise C$526 million surplus in the prior month.
Jobs data is due on Friday.
U.S. crude oil prices were down 0.35 percent at $53.64 a barrel, while Brent lost 0.56 percent to $56.49. Canadian government bond prices were higher across the maturity curve, with the two-year price up 4 Canadian cents to yield 0.755 percent and the be
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.