TORONTO (Reuters) – The Canadian dollar edged lower against the greenback on Monday, reversing from its highest level in nearly three weeks earlier in the session as oil prices tumbled and investors braced for domestic inflation data due later in the week.
The price of oil, one of Canada’s major exports, sank after U.S. President Donald Trump said OPEC should ease its approach on boosting crude prices, which he said were “getting too high.”
US - Crude - Oil - Futures - Percent
U.S. crude oil futures settled 3.1 percent lower at $55.48 a barrel.
The decline in oil prices and “traders wanting to square up positions” ahead of inflation data triggered the loonie’s pullback, said Darren Richardson, Chief Operating Officer at Richardson International Currency Exchange Inc.
Canada - Inflation - Report - January - Wednesday
Canada’s inflation report for January is due on Wednesday and fourth-quarter domestic product data is due on Friday, which could help guide expectations for further interest rate hikes from the Bank of Canada.
Money markets expect the Bank of Canada to leave its benchmark interest rate unchanged at 1.75 percent at next week’s interest rate decision, after 125 basis points of tightening by the central bank since July 2017.
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At 4:21 p.m. (2121 GMT), the...
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