November 26, 2019 / 3:17 PM / 14 days ago

Canadian dollar sticks to narrow range as railway strike ends

TORONTO (Reuters) - The Canadian dollar was little changed against the greenback on Tuesday as investors weighed fresh signs of progress toward a U.S.-China trade deal and a deal was reached to end a railway strike that threatened to slow Canada’s economic growth.

FILE PHOTO: A Canadian dollar coin, commonly known as the "Loonie", is pictured in this illustration picture taken in Toronto January 23, 2015. The Canadian dollar strengthened against the U.S. dollar on Friday after Canadian CPI data showed an increase in core inflation. REUTERS/Mark Blinch/File Photo

Teamsters Canada and Canadian National Railway Co (CNR.TO) said they reached a tentative deal to end a strike at the country’s largest railroad that had entered its eighth day, disrupting supply chains across the country.

Economists estimated that a prolonged strike could have cost the Canadian economy billions of dollars.

World stocks .WORLD kept record levels in sight after Beijing said negotiators had reached a “common understanding on resolving relevant problems”, but stopped short of indicating an agreement was in the offing.

Canada is a major exporter of commodities, including oil, so its economy could benefit from an improved outlook for global trade.

U.S. crude oil futures CLc1 were up 0.8% at $58.46 a barrel.

At 9:52 a.m. (1452 GMT), the Canadian dollar CAD=D4 was trading nearly unchanged at 1.3301 to the greenback, or 75.18 U.S. cents. The currency traded in a narrow range of 1.3298 to 1.3316.

Last Wednesday, the loonie hit its weakest intraday level since Oct. 10 at 1.3328. The currency has been pressured since October by a more dovish stance from the Bank of Canada.

Clues for the central bank’s interest rate outlook could come on Friday when data for Canada’s third quarter gross domestic product will be released.

U.S. House of Representatives Speaker Nancy Pelosi said on Monday that a version of the U.S.-Mexico-Canada trade agreement that House Democrats could back was “within range” but that they needed to conduct a final review.

Canada sends about 75% of its exports to the United States.

Canadian government bond prices were higher across a flatter yield curve on Tuesday in sympathy with U.S. Treasuries. The two-year CA2YT=RR rose 1.5 Canadian cents to yield 1.575% and the 10-year CA10YT=RR was up 15 Canadian cents to yield 1.446%.

Reporting by Fergal Smith; Editing by Nick Zieminski

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