The Canadian dollar CADUSD was little changed against its U.S. counterpart on Monday as investors marked time ahead of a key U.S. inflation report and a speech by a Bank of Canada policymaker this week.
The loonie was trading nearly unchanged at 1.3450 to the greenback, or 74.35 U.S. cents, after trading in a range of 1.3431 to 1.3475. The currency has been in a sideways pattern since mid-January after losing as much as 2.1 per cent in the first few weeks of the year.
“It’s a quiet start to the week,” said Benjamin Reitzes, Canadian rates & macro strategist at BMO Capital Markets. “But there is big data out (on Tuesday) out of the U.S. … and that will be the big driver over the next 24, 36 hours for the Canadian dollar.”
The U.S. consumer price index report for January, due for release on Tuesday, could offer clues on when the Federal Reserve may begin widely anticipated interest rate cuts.
The timing of expected Bank of Canada rate cuts is also uncertain. Deputy Governor Rhys Mendes is set to speak on Wednesday.
The price of oil, one of Canada’s major exports, settled 8 cents higher at $76.92 a barrel as Middle East tensions continued to provide support.
Canadian government bond yields rose across the curve. The 10-year was up 2.6 basis points at 3.571 per cent, trading near its highest level in two months.