The Canadian greenback CADUSD strengthened in opposition to its U.S. counterpart on Monday, with the foreign money clawing again some current declines as fairness markets rebounded and forward of GDP knowledge this week that might information expectations for the Financial institution of Canada.
The loonie was up 0.3% at 1.3575 to the buck, or 73.66 U.S. cents, after buying and selling in a spread of 1.3535 to 1.3624. On Friday, it touched a seven-week low at 1.3665.
“I think that we’re consolidating after a fairly tough week final week,” stated Bipan Rai, international head of FX technique at CIBC Capital Markets.
“It wouldn’t shock me for USD-CAD if we spent the following couple of minutes consolidating near the 1.3550 to 1.3700 vary.”
U.S. shares rose as buyers hunted for bargains after the primary benchmarks logged sharp declines final week on worries that financial coverage could be tighter than beforehand thought, whereas the safe-haven U.S. greenback gave again some current positive aspects in opposition to a basket of main currencies.
Canadian gross home product knowledge for the fourth quarter, due on Tuesday, is predicted to point out that the economic system grew at an annualized fee of 1.5%. December GDP knowledge can be due which may embrace a sophisticated estimate for January.
Latest employment and manufacturing knowledge in addition to preliminary estimates for retail gross sales and wholesale commerce have confirmed that the economic system remained strong at the beginning of the 12 months.
“How the market treats that (January superior estimate) may very well be fascinating for dollar-Canada,” Rai stated, including that it may result in the market pricing in the next endpoint for Financial institution of Canada rate of interest hikes.
Canadian authorities bond yields have been blended throughout the curve. The two-year touched its highest stage since October 2007 at 4.340% earlier than dipping to 4.268%, down 1.6 foundation factors on the day.
