TORONTO (Reuters) - The Canadian dollar edged higher against the greenback on Tuesday as Canada, the United States and Mexico tried to finalize a North American trade pact and as investors weighed prospects of additional U.S. tariffs on China being delayed.
Senior U.S. and Canadian officials were set to fly to Mexico City on Tuesday to work on final changes to the U.S.-Mexico Canada Agreement (USMCA) that could clear the way for a vote in the U.S. Congress before the end of the year.
Canada sends about 75% of its exports to the United States, including oil. Its commodity-linked economy could also benefit from an improved outlook for global trade.
U.S. stock index futures turned positive after a report that trade negotiators from the United States and China were planning to delay a fresh round of tariffs set to kick in on Dec. 15.
U.S. crude oil futures (CLc1) were down 0.1% at $58.96 a barrel after clawing back some earlier losses.
At 9:02 a.m. (1402 GMT), the Canadian dollar was trading 0.1% higher at 1.3233 to the greenback, or 75.57 U.S. cents. The currency traded in a range of 1.3225 to 1.3249.
Bank of Canada Governor Stephen Poloz, who will step down when his seven-year mandate expires in June, is due to speak on Thursday.
Last week, the central bank left its benchmark interest rate on hold at 1.75% as it pointed to early signs the global economy was stabilizing and sources of resilience in the Canadian economy.
But domestic data has since showed that Canada's economy shed more than 70,000 jobs in November.
Canadian government bond prices were mixed across the yield curve, with the two-year (CA2YT=RR) flat to yield 1.666% and the benchmark 10-year (CA10YT=RR) falling 8 Canadian cents to yield 1.593%.