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TORONTO, June 30 (Reuters) - The Canadian dollar crept higher against the U.S. dollar on Tuesday morning, drawing support from steady global equities on lingering investor optimism recent efforts to jumpstart the economy may be working.
World stocks .MIWD00000PUS looked set on Tuesday for its best quarterly gain since its 1988 launch fueled largely by recovery talk in recent months. [ID:nLU711192]
At 7:48 a.m. (1148 GMT), the Canadian dollar was at C$1.1526 to the U.S. dollar, or 86.76 U.S. cents, up from Monday's finish at C$1.1567 to the U.S. dollar, or 86.45 U.S. cents.
The currency was slightly stronger following lackluster trade in the previous session given the moves in the oil and equity markets, said David Bradley, director of foreign exchange trading at Scotia Capital.
"I think it's playing a little bit of catch up," he said.
The Canadian dollar drifted lower against the U.S. dollar on Monday in a quiet rangebound session, unable to benefit from a rally in oil prices.
Bradley also said he expected "liquidity to dry up over the course of the week" given there are two market holidays.
Oil prices CLc1, a key Canadian export that often influences the direction of the currency, was relatively flat. Oil was up slightly around $71.67 a barrel, paring gains made earlier in the session. [ID:nSP479412]
The only domestic data due later on Tuesday morning was Canadian GDP data, expected to show economic contraction with a 0.1 percent fall in April after a 0.3 percent decline in March. However, Bradley said that reading was expected to have little impact on the currency.
Canadian bond prices were largely lower, moving in unison with U.S. Treasuries where prices eased in Europe on Tuesday as stock index futures pointed to a firmer start on Wall Street. [ID:nLU183342] (Reporting by Jennifer Kwan; Editing by Theodore d'Afflisio)