📈 69% of S&P 500 stocks beating the index - a historic record! Pick the best ones with AI.See top stocks

Canadian dollar steadies as higher oil prices offset U.S.-China tensions

Published 2019-01-29, 10:03 a/m
© Reuters.  Canadian dollar steadies as higher oil prices offset U.S.-China tensions
USD/CAD
-
CL
-
CA2YT=RR
-
CA10YT=RR
-

* Canadian dollar trades near flat against the greenback

* Price of U.S. oil rises 2.8 percent

* Canadian bond prices dip across the yield curve

TORONTO, Jan 29 (Reuters) - The Canadian dollar was little changed against its U.S. counterpart on Tuesday as higher oil prices offset increased uncertainty over trade talks this week between the United States and China.

U.S. officials announced criminal charges against China's Huawei Technologies Co Ltd HWT.UL that could upset the U.S.-China talks, which are part of negotiations intended to walk back trade tensions between the world's two largest economies. is running a current account deficit and exports many commodities, including oil, so its economy could be hurt by a reduction in the global flow of trade or capital.

The price of oil, one of Canada's major exports, rose after Washington imposed sanctions on Venezuelan state-owned oil firm PDVSA in a move that may curb the OPEC member's crude exports. U.S. crude oil futures CLc1 were up 2.8 percent at $53.42 a barrel. 9:44 a.m. (1444 GMT), the Canadian dollar CAD=D4 was trading nearly unchanged at 1.3259 to the greenback, or 75.42 U.S. cents. The currency, which on Monday touched its strongest intraday in more than two weeks at 1.3204, traded in a range of 1.3246 to 1.3278.

The steady profile for the loonie came as foreign exchange traders awaited crucial parliamentary votes in Britain later in the day that are aimed at breaking the Brexit deadlock. The currency market could also take its cue this week from Wednesday's interest rate decision by the U.S. Federal Reserve. Fed is expected to acknowledge growing risks to the U.S. economy as global momentum weakens.

Canadian government bond prices edged lower across the yield curve, with the two-year CA2YT=RR price down 1 Canadian cent to yield 1.879 percent and the 10-year CA10YT=RR falling 2 Canadian cents to yield 1.966 percent.

Canada's gross domestic product data for November is due on Thursday.

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.