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Canadian dollar holds near five-month high ahead of G20 summit

Published 2019-06-27, 10:07 a/m
© Reuters.  Canadian dollar holds near five-month high ahead of G20 summit
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 rises 0.1% against the greenback

* Loonie is on track to gain 3.1% in June

* Price of U.S. oil trades near flat

* Canadian bond prices gain across the yield curve

TORONTO, June 27 (Reuters) - The Canadian dollar strengthened slightly against its U.S. counterpart on Thursday, approaching a near five-month high posted the day before, as investors weighed the prospect of progress in a trade dispute between the United States and China.

Global stocks .WORLD rose following a report that the U.S. and China have agreed to a tentative truce in their trade dispute before a G20 summit this weekend. is a major exporter of commodities, including oil, so its economy could benefit from reduced uncertainty for global trade.

U.S. crude oil CLc1 prices were little changed at $59.37 a barrel, constrained by perceptions that supply is ample despite prospects for continued OPEC curbs. 9:37 a.m. (1337 GMT), the Canadian dollar CAD=D4 was trading 0.1% higher at 1.3113 to the greenback, or 76.26 U.S. cents. The currency, which on Wednesday touched its strongest since Feb. 5 at 1.3108, traded in a narrow range of 1.3111 to 1.3138.

The loonie is on track to gain 3.1% in June, while it has gained more than 4% since the start of the year, the best performance among G10 currencies.

The modest gain on Thursday for the loonie came as data from Statistics Canada showed that average weekly earnings of non-farm payroll employees rose by 2.9% in April, the fastest pace since August last year, and that non-farm payroll employees rose by 17,000 for the same month from March.

Canadian gross domestic product data for April is due on Friday and could help guide expectations for interest rate decisions by the Bank of Canada over the coming months.

Canadian government bond prices were higher across the yield curve in sympathy with U.S. Treasuries. The two-year CA2YT=RR rose 3.5 Canadian cents to yield 1.444% and the 10-year CA10YT=RR was up 21 Canadian cents to yield 1.480%.

Earlier in the session, the 10-year yield touched its highest since June 12 at 1.522%.

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