TORONTO (Reuters) - The Canadian dollar edged higher against its U.S. counterpart on Monday ahead of a report that could help guide Bank of Canada interest rate expectations, as lower trade tensions helped boost stock and oil prices.
Stocks and the price of oil, one of Canada’s major exports, recovered after officials of the Trump administration stressed the dispute with China could be resolved through talks.
Canada’s commodity-linked economy could be hurt if trade tensions slow global growth.
U.S. crude CLc1 prices were up 1.3 percent at $62.88 a barrel.
The Bank of Canada will release its business outlook report, based on a survey of about 100 companies, at 10:30 a.m. EDT (1430 GMT).
The central bank has raised interest rates three times since July and money markets see a 75 percent chance of another hike by July. BOCWATCH
At 9:16 a.m. EDT (1316 GMT), the Canadian dollar CAD=D4 was trading 0.1 percent higher at C$1.2772 to the greenback, or 78.30 U.S. cents.
The currency traded in a range of C$1.2765 to C$1.2818. It touched its strongest intraday on Friday in more than five weeks at C$1.2732.
Talks to rework the North American Free Trade Agreement are not advanced enough for the United States, Mexico and Canada to announce a deal “in principle” at this month’s Summit of the Americas in Lima, according to two people familiar with matter.
Canada sends about 75 percent of its exports to the United States. Upbeat comments by officials from the three countries about the chances of a pact soon and stronger-than-expected domestic jobs data helped boost the loonie 0.9 percent last week.
Reporting by Fergal Smith; Editing by Nick Zieminski
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