C$ little changed as investors assess Trump travel curbs

Mon Jan 30, 2017 10:12am EST
 
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TORONTO (Reuters) - The Canadian dollar was little changed against its U.S. counterpart on Monday, recovering from an earlier nearly one-week low, as oil prices fell and investors weighed concerns over a travel ban implemented by U.S. President Donald Trump.

The U.S. dollar .DXY rose against a basket of major currencies as weaker-than-expected German inflation data pressured the euro and data showed U.S. consumer spending rose solidly in December.

Concerns about a U.S. order banning the entry of people from seven Muslim-majority countries had weighed on the greenback earlier in the session.

Canada said it would offer temporary residency to any travelers stranded by the U.S. ban.

The loonie's steady profile came even as oil, one of Canada's major exports, fell. U.S. crude CLc1 prices were down 0.87 percent at $52.71 a barrel after another increase in U.S. drilling activity spread concern over rising output.

At 10:02 a.m. ET (1502 GMT), the Canadian dollar CAD=D4 was trading at C$1.3136 to the greenback, or 76.13 U.S. cents, slightly stronger than Friday's close of C$1.3138, or 76.12 U.S. cents.

The currency's strongest level of the session was C$1.3116, while it touched its weakest since Jan. 24 at C$1.3168.

The loonie rose 1.3 percent last week as investor fears of a more unfavorable trade outlook for Canada abated and after Trump signed orders smoothing the path for the Keystone XL oil pipeline.

Speculators turned bullish on the Canadian dollar for the first time since September, data from the Commodity Futures Trading Commission and Reuters calculations showed on Friday. Canadian dollar positions swung to net long 2,519 contracts as of Jan. 24 from net short 5,456 contracts a week earlier.   Continued...

 
A Canadian dollar coin, commonly known as the "Loonie", is pictured in this illustration picture taken in Toronto January 23, 2015.   REUTERS/Mark Blinch