Canadian dollar holds near 14-month lows as oil prices decline
TORONTO - The Canadian dollar was little changed on Monday against its U.S. counterpart as oil prices fell, with the currency hovering above the 14-month intraday low struck in the previous session.
Last week, the loonie fell 1.1 per cent pressured by an uncertain outlook for the North American Free Trade Agreement and mortgage market concerns.
Home Capital Group Inc (HCG.TO 12.13%), Canada's biggest non-bank mortgage lender, reported on Monday an initial draw down on a $2 billion credit line it secured last week. Last month regulators accused the company of making "materially misleading statements" to investors.
U.S. crude prices were down 0.81 per cent at US$48.93 a barrel as rising oil output and drilling in the United States countered Organization of the Petroleum Exporting Countries-led production cuts.
Oil is one of Canada's major exports.
At 9:16 a.m. ET (1316 GMT), the Canadian dollar was trading at C$1.3654 to the greenback, or 73.24 U.S. cents, slightly weaker than Friday's official close of at $1.3650, or 73.26 U.S. cents.
The currency traded in a range of $1.3640 to $1.3687. It touched on Friday its weakest since February 2016 at $1.3697.
Data on Friday showed that Canada's economy stalled in February. But economists say that the economy remains on track for solid growth in the first quarter.
Speculators have ramped up bearish bets on the Canadian dollar to the most since February 2016, data from the Commodity Futures Trading Commission and Reuters calculations showed on Friday. Canadian dollar net short positions jumped to 42,642 contracts as of April 25 from 33,252 a week earlier.
Canadian government bond prices were slightly lower across the yield curve in sympathy with U.S. Treasuries after a U.S. government shutdown was averted, and U.S. stock index futures gained ground.
The two-year price dipped 0.5 Canadian cent to yield 0.725 per cent, and the 10-year fell 2 Canadian cents to yield 1.552 per cent.
Canada's trade report for March is due on Thursday, and the April employment report is due on Friday.
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TORONTO - The Canadian dollar was little changed on Monday against its U.S. counterpart as oil prices fell, with the currency hovering above the 14-month intraday low struck in the previous session.
Last week, the loonie fell 1.1 per cent pressured by an uncertain outlook for the North American Free Trade Agreement and mortgage market concerns.
Home Capital Group Inc (HCG.TO 12.13%), Canada's biggest non-bank mortgage lender, reported on Monday an initial draw down on a $2 billion credit line it secured last week. Last month regulators accused the company of making "materially misleading statements" to investors.
U.S. crude prices were down 0.81 per cent at US$48.93 a barrel as rising oil output and drilling in the United States countered Organization of the Petroleum Exporting Countries-led production cuts.
Oil is one of Canada's major exports.
At 9:16 a.m. ET (1316 GMT), the Canadian dollar was trading at C$1.3654 to the greenback, or 73.24 U.S. cents, slightly weaker than Friday's official close of at $1.3650, or 73.26 U.S. cents.
The currency traded in a range of $1.3640 to $1.3687. It touched on Friday its weakest since February 2016 at $1.3697.
Data on Friday showed that Canada's economy stalled in February. But economists say that the economy remains on track for solid growth in the first quarter.
Speculators have ramped up bearish bets on the Canadian dollar to the most since February 2016, data from the Commodity Futures Trading Commission and Reuters calculations showed on Friday. Canadian dollar net short positions jumped to 42,642 contracts as of April 25 from 33,252 a week earlier.
Canadian government bond prices were slightly lower across the yield curve in sympathy with U.S. Treasuries after a U.S. government shutdown was averted, and U.S. stock index futures gained ground.
The two-year price dipped 0.5 Canadian cent to yield 0.725 per cent, and the 10-year fell 2 Canadian cents to yield 1.552 per cent.
Canada's trade report for March is due on Thursday, and the April employment report is due on Friday.
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