Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Canadian dollar steadies near 1-month low, weighed by BoC's more dovish stance

Published 2019-11-12, 04:08 p/m
© Reuters.  Canadian dollar steadies near 1-month low, weighed by BoC's more dovish stance
USD/CAD
-
CL
-
CA2YT=RR
-
CA10YT=RR
-
DXY
-

* Canadian dollar trades near unchanged against greenback

* Price of U.S. oil falls 0.1%

* Loonie touches its weakest intraday since Oct. 11 at 1.3257

* 10-year yield exceeds 2-year yield for first time since July 25

By Fergal Smith

TORONTO, Nov 12 (Reuters) - The Canadian dollar was little changed against its U.S. counterpart on Tuesday, holding near a one-month low it hit earlier in the day as the greenback broadly climbed and investors adjusted to the Bank of Canada's more dovish stance.

The U.S. dollar .DXY rose against a basket of major currencies, although its gains stalled after U.S. President Donald Trump in a speech offered no new details on the state of the administration's trade war with China. The big dollar is catching a bit of a bid," said Michael Goshko, corporate risk manager at Western Union Business Solutions.

"We did get some indication from the Bank of Canada at the last meeting that it was likely to become more accommodative in the meetings ahead, so that's also taking some of the starch out of the Canadian dollar as well," Goshko said.

The loonie has declined by as much as 1.3% since Oct. 30, when Canada's central bank cut its economic growth forecasts and expressed concern about global trade uncertainty. of Canada Governor Stephen Poloz is due to speak on Thursday, which could help guide expectations for the interest rate outlook.

At 3:24 p.m. (2024 GMT), the Canadian dollar CAD=D4 was trading nearly unchanged at 1.3231 to the greenback, or 75.58 U.S. cents. The currency's strongest level of the session was 1.3217, while it touched its weakest since Oct. 11 at 1.3257.

The price of oil, one of Canada's major exports, gave up its earlier gains after Trump's speech. U.S. crude oil futures CLc1 settled 0.1% lower at $56.80 a barrel.

Canadian government bond prices were lower across a steeper yield curve as trading resumed after a holiday on Monday. The two-year CA2YT=RR fell 2.5 Canadian cents to yield 1.598% and the 10-year CA10YT=RR was down 17 Canadian cents to yield 1.599%.

It was the first time since July 25 that the 10-year yield traded above the 2-year yield. Reversion of the yield curve to upward sloping could reduce fears of an economic slowdown.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.