CANADA FX DEBT-C$ edges lower ahead of top tier domestic data this week

Published 2017-03-06, 09:54 a/m
© Reuters.  CANADA FX DEBT-C$ edges lower ahead of top tier domestic data this week
USD/CAD
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CL
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CA2YT=RR
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CA10YT=RR
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* Canadian dollar at $1.3393, or 74.67 U.S. cents

* Bond prices mixed across the maturity curve

TORONTO, March 6 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Monday after falling more than 2 percent last week, but was trading in a narrow range ahead of upcoming domestic trade and employment data.

Recent losses for the loonie came as Federal Reserve Chair Janet Yellen cemented the view that the Fed will raise interest rates at its March 14-15 meeting.

In contrast, the Bank of Canada held rates steady on Wednesday as it stayed focused on the "significant uncertainties" facing the economy, including the policies of U.S. President Donald Trump.

Policy divergence will pressure the loonie over the coming months, a Reuters poll predicted. 9:36 a.m. ET (1436 GMT), the Canadian dollar CAD=D4 was trading at C$1.3393 to the greenback, or 74.67 U.S. cents, slightly weaker than Friday's close of C$1.3379, or 74.74 U.S. cents.

The currency's strongest level of the session was C$1.3373, while its weakest was C$1.3414. On Friday, the loonie touched a nearly two-month low at C$1.3437.

Investors will be watching to see if Canada can post its third monthly trade surplus in a row in January, when the data is released on Tuesday. The focus will also be on exports, where volumes were disappointing in January. ECONCA

Canada's employment report for February is due on Friday.

Prices of oil, one of Canada's major exports, dipped as the market weighed lower growth targets in China and Russia's compliance with a global deal to cut oil output. crude CLc1 prices were down 0.09 percent at $53.28 a barrel.

Canadian government bond prices were mixed across the yield curve, with the two-year CA2YT=RR up 1.5 Canadian cents to yield 0.757 percent and the 10-year CA10YT=RR flat to yield 1.7 percent.

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