Canadian dollar weaker as oil slips; trade, jobs data eyed

Mon Feb 6, 2017 5:18pm EST
 
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By Alastair Sharp

TORONTO (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Monday as oil prices fell and bond yields settled at a two-week low, with investors awaiting December trade data due on Tuesday and jobs numbers later in the week for signs of economic growth.

The loonie, as Canada's currency is popularly known, had gained for two straight weeks on a combination of favorable economic data and greenback weakness. Last week, it touched its strongest level since September.

The Canadian dollar CAD=D4 settled at C$1.3087 to the greenback, or 76.41 U.S. cents, weaker than the Bank of Canada's official close on Friday of C$1.3028, or 76.76 U.S. cents.

The loonie traded in a range of C$1.3008 to C$1.3135.

"We spent two or three days trying to push through C$1.30 without any real success," said Darcy Browne, managing director for foreign exchange sales at CIBC Capital Markets.

"It rallied up to C$1.3135, which is the 200-day moving average, and got rejected pretty hard from there as well," he said.

Economists polled by Reuters have a wide range of expectations for Tuesday's data after Canada achieved its first trade surplus in more than two years in November.

The most optimistic see a C$1.5 billion surplus, while the most pessimistic expect a C$1.5 billion deficit. The median view is for a surplus of C$350 million after the surprise C$526 million surplus in the prior month.   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