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Canadian dollar steadies near one-week high after BoC minutes

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CANADA FX DEBT-Canadian dollar steadies near one-week high after BoC minutes

Loonie touches a one-week high at 1.3699

BoC minutes show bank mulled waiting to cut rates

Price of U.S. oil dips 0.1%

Bond yields rise across the curve

By Fergal Smith

TORONTO, June 19 (Reuters)The Canadian dollar was little changed against its U.S. counterpart on Wednesday, holding near an earlier one-week high, as investors weighed minutes from the Bank of Canada’s latest meeting and looked forward to Canadian inflation data.

The loonie CAD= was trading nearly unchanged at 1.3715 to the U.S. dollar, or 72.91 U.S. cents, after touching its strongest level since last Wednesday at 1.3699.

“It’s been dragged along by the equity (market) story this week,” said Simon Harvey, head of FX analysis for Monex Europe and Monex Canada.

U.S. markets were closed for the Juneteenth holiday. On Tuesday, the benchmark S&P 500 stock index advanced to a record high.

Canada is a major producer of commodities, including oil, so the loonie tends to benefit from upswings in risk appetite.

Still, Harvey does not expect any big moves in the USD-CAD currency pair until the release of Canada’s inflation report for May on June 25.

“We’re really pinpointing next week’s inflation report and looking at that as the main kind of catalyst to inject some volatility back in the cross,” Harvey said.

The Bank of Canada has worried that progress on cooling inflation could stall. It mulled the merits of waiting for an extra month to start cutting interest rates before it decided to ease monetary policy on June 5, minutes of the meeting showed.

Investors see a 64% chance the central bank will ease further in July. 0#BOCWATCH

The price of oil CLc1 was down 0.1% at $81.49 a barrel but holding near an earlier seven-week high.

Canadian government bond yields rose across the curve. The 10-year CA10YT=RR was up 1.8 basis points at 3.280% after it touched its lowest level in four and a half months during Tuesday’s session at 3.258%.

Reporting by Fergal Smith
Editing by Chris Reese



Read More: Canadian dollar steadies near one-week high after BoC minutes

2024-06-19 18:09:06

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