🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

Canadian dollar hits 1-month low, pares decline ahead of Poloz speech

Published 2019-11-13, 04:08 p/m
© Reuters.  Canadian dollar hits 1-month low, pares decline ahead of Poloz speech
USD/CAD
-
CL
-
CA2YT=RR
-
CA10YT=RR
-

* Canadian dollar falls 0.1% against the greenback

* Loonie hits its weakest since Oct. 11 at 1.3268

* Price of U.S. oil increases 0.6%

* Canadian bond prices rise across a flatter yield curve

By Fergal Smith

TORONTO, Nov 13 (Reuters) - The Canadian dollar weakened to a one-month low against its U.S. counterpart on Wednesday, but the currency's decline lost some momentum as investors turned attention to a speech by Bank of Canada Governor Stephen Poloz on Thursday.

At 3:40 p.m. (2040 GMT), the Canadian dollar CAD=D4 was trading 0.1% lower at 1.3251 to the greenback, or 75.47 U.S. cents. The currency's strongest level of the session was 1.3230, while it touched its weakest since Oct. 11 at 1.3268.

The loonie has declined by as much as 1.5% since Oct. 30, when the Bank of Canada shifted to a more dovish stance by cutting its economic growth forecasts and expressing concern about global trade uncertainty. fundamental is fully priced in, so if what we get out of Poloz and his speech from San Francisco is no change in the tone from what we have already seen, then I don't think it will have much play, said Greg Anderson, global head of foreign exchange strategy at BMO Capital Markets in New York.

"It might keep us on a 1.32 handle in dollar-CAD but I don't think it is going to push us to new thresholds. That would be much more data-dependent than anything," Anderson said.

Poloz is due to speak on the fourth industrial revolution at the Federal Reserve Bank of San Francisco on Thursday evening. Money markets see chances of an interest rate cut from Canada's central bank next month at less than 25%. BOCWATCH

U.S. stocks seesawed as fresh uncertainty over relations between the United States and China offset upbeat comments by Federal Reserve Chairman Jerome Powell about the U.S. economy. is a major exporter of commodities, including oil, so its economy could be hurt by a more uncertain outlook for global trade.

U.S. crude oil futures CLc1 settled 0.6% higher after the Organization of the Petroleum Exporting Countries said it saw no signs of global recession and rival U.S. shale oil production could grow by much less than expected in 2020. government bond prices were higher across a flatter yield curve, outperforming U.S. Treasuries after data showed U.S. consumer prices rebounded more than expected in October.

The two-year CA2YT=RR rose 6 Canadian cents to yield 1.572% and the 10-year CA10YT=RR was up 56 Canadian cents to yield 1.550%. The 10-year yield hit its lowest intraday level since Nov. 4 at 1.530%.

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.