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Canadian dollar steadies ahead of key domestic data this week

Published 2019-11-18, 09:48 a/m
© Reuters.  Canadian dollar steadies ahead of key domestic data this week
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* Canadian dollar trades near flat against the U.S. dollar

* Loonie touches a 10-day high at 1.3210

* Price of U.S. oil falls 0.9%

* Canadian bond prices rise across the yield curve

TORONTO, Nov 18 (Reuters) - The Canadian dollar was little changed against the greenback on Monday, pulling back from an earlier 10-day high as global trade optimism faded and domestic inflation data loomed later in the week that could help guide the interest rate outlook.

The rally in global stocks .WORLD stalled and the price of oil, one of Canada's major exports, turned lower after CNBC reported that the mood in Beijing about a trade deal with the United States was pessimistic due to U.S. President Donald Trump's reluctance to roll back tariffs. crude oil futures CLc1 prices were down 0.9% at $57.21 a barrel. inflation report for October is due on Wednesday and September retail sales data is due on Friday, both of which could help guide expectations for Bank of Canada interest rate cuts.

Bank of Canada Senior Deputy Governor Carolyn Wilkins will speak on Tuesday on safeguarding the Canadian financial system, while Governor Stephen Poloz is due to speak on Thursday on economic change.

Money markets see chances of the central bank cutting interest rates next month at less than 20%. BOCWATCH

At 9:29 a.m. (1429 GMT), the Canadian dollar CAD=D4 was trading nearly unchanged at 1.3223 to the greenback, or 75.63 U.S. cents. The currency, which edged 0.1% higher last week, touched its strongest intraday level since Nov. 8 at 1.3210.

Still, investors have cut bullish bets on the loonie, data from the U.S. Commodity Futures Trading Commission and Reuters calculations showed on Friday. As of Nov. 12, net long positions in the currency had fallen to 42,373 contracts, pulling back 54,002 in the prior week, which was the highest level since October 2017.

Canadian government bond prices were higher across the yield curve in sympathy with U.S. Treasuries. The two-year CA2YT=RR rose 2 Canadian cents to yield 1.532% and the 10-year CA10YT=RR was up 9 Canadian cents to yield 1.472%.

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