2 Min Read
By Jennifer Kwan
TORONTO, June 29 (Reuters) - The Canadian dollar edged higher against the U.S. currency on Monday, underpinned by firmness in commodity prices and steady global markets, while trading was expected to be lackluster this week due to holidays on both sides of the border.
At 7:38 a.m. (1138 GMT), the Canadian dollar was at C$1.1521 to the U.S. dollar, or 86.80 U.S. cents, up from C$1.1542 to the U.S. dollar, or 86.64 U.S. cents at Friday's close.
The price of oil CLc1, a key Canadian export, rose toward $70 a barrel after Nigeria's main militant group said it attacked a Royal Dutch Shell (RDSa.L) oil platform [ID:nSYD480539], while gold were also higher. [ID:nLT672582]
U.S. stock index futures were flat to higher on Monday [ID:nN29352880] and global equity markets steadied. .MIWD00000PUS [MKTS/GLOB]
"The conviction of the Canadian dollar move is extremely lackluster given that overall backdrop," said David Watt, senior currency strategist at RBC Capital Markets.
With few domestic economic reports on tap this week and two market holidays on both sides of the border, trading was expected to "reactive" as investors respond to events that unfold, he added.
Markets in Canada will be closed on Wednesday for the Canada Day holiday, while U.S. markets will be closed on Friday for the Independence Day holiday weekend.
Canadian bond prices were mostly higher across the curve, along with steady U.S. Treasuries in Europe on Monday as the market paused after a rally pushed benchmark yields to their lowest in almost four weeks with the prospect of the Federal Reserve buying bonds this week propping up prices. [ID:nLT509391] (Reporting by Jennifer Kwan; Editing by Theodore d'Afflisio)