CAD Weaker on Lower Energy Awaiting Trade and Jobs Data

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

via Kitco

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza