June 18, 2018 / 1:32 PM / 3 months ago

Canadian dollar steadies ahead of speech by Bank of Canada official

TORONTO (Reuters) - The Canadian dollar steadied against its U.S. counterpart on Monday ahead of a speech by a Bank of Canada deputy governor, as oil prices rose and investors weighed the threat of a trade war that could slow global growth.

FILE PHOTO: A Canada Dollar note is seen in this June 22, 2017 illustration photo. REUTERS/Thomas White/Illustration/File Photo

At 9:05 a.m. EDT (1305 GMT), the Canadian dollar CAD=D4 was trading nearly unchanged at C$1.3194 to the greenback, or 75.79 U.S. cents. The currency, which fell 2 percent last week, traded in a narrow range between C$1.3160 and C$1.3208.

On Friday, it touched its weakest level in nearly a year at C$1.3210.

The price of oil, one of Canada’s major exports, rose ahead of an OPEC meeting this week that is widely expected to increase global crude supply and as investors assessed the impact of a trade dispute between the United States and China.

U.S. crude CLc1 was up 0.2 percent at $65.18 a barrel.

Tit-for-tat tariffs between the United States and China pressured stocks, with futures markets pointing to a lower open on Wall Street.

Canada runs a current account deficit, so its currency could be hurt by souring of risk appetite. The country has its own trade feud with the United States and is also in slow-moving talks with the United States and Mexico to revamp the North American Free Trade Agreement.

Bank of Canada Deputy Governor Lynn Patterson will speak in Toronto. The central bank, which could hike interest rates for a second time this year in July, will release her prepared remarks at 12:45 p.m. EDT (1645 GMT).

Speculators have cut bearish bets on the Canadian dollar, data from the U.S. Commodity Futures Trading Commission and Reuters calculations showed on Friday. As of June 12, net short positions dipped to 14,988 contracts from 16,039 a week earlier.

Canadian government bond prices were higher across the yield curve in sympathy with U.S. Treasuries. The two-year CA2YT=RR rose 1.5 Canadian cents to yield 1.884 percent and the 10-year CA10YT=RR climbed 15 Canadian cents to yield 2.201 percent.

Canadian inflation data for May and the April retail sales report are due on Friday.

Reporting by Fergal Smith; Editing by Paul Simao

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