Article Highlights

  • Canadian dollar at C$1.3043, or 76.67 U.S. cents
  • Price of U.S. oil rises 2.3 percent
  • Bond prices lower across a steeper yield curve
  • 10-year yield touches its highest in nearly seven weeks
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The Canadian dollar edged higher against its U.S. counterpart on Monday as higher oil prices helped the loonie add to last week’s gains ahead of key domestic economic data and policy meetings for major central banks over the coming days.

The price of oil, one of Canada’s major exports, rose as investors remained cautious over the supply outlook. U.S. crude prices were up 2.3 percent at $70.26 a barrel.

Canada’s gross domestic product data for May is due on Tuesday and June trade data is due on Friday. The data could help guide investor expectations for further Bank of Canada interest rate hikes this year. Earlier this month, the central bank hiked its benchmark rate by 25 basis points to 1.5 percent.

The Bank of Japan ends a two-day meeting on Tuesday, the Federal Reserve concludes its meeting on Wednesday and the Bank of England is expected to raise interest rates on Thursday.

At 9:17 a.m. EDT (1317 GMT), the Canadian dollar was trading 0.1 percent higher at C$1.3043 to the greenback, or 76.67 U.S. cents.

The currency, which rose 0.7 percent last week, traded in a narrow range of C$1.3037 to C$1.3079.

Speculators have cut bearish bets on the Canadian dollar for the second straight week, data from the U.S. Commodity Futures Trading Commission and Reuters calculations showed on Friday. As of July 24, net short positions had fallen to 44,511 contracts from 47,484 a week earlier.

Canada, the European Union, Japan, Mexico and South Korea will meet in Geneva this week to discuss how to respond to threats by U.S. President Donald Trump to impose tariffs on U.S. imports of autos and car parts, officials familiar with the talks said.

Canadian government bond prices were lower across a steeper yield curve in sympathy with U.S. Treasuries.

The two-year fell 2 Canadian cents to yield 2.073 percent and the 10-year declined 33 Canadian cents to yield 2.334 percent, its highest yield since June 13.