Canada FX Debt-C$ Heads For Monthly Gain As Current Account Swings To Surplus
Canadian dollar dips 0.1% against the greenback * Canada posts first current account surplus since 2008 * Price of U.S. oil rises 1.4% * Canadian bond yields edge lower across the curve
The Canadian dollar edged lower
against its U.S. counterpart on Monday, but was on track to
notch its fourth straight monthly gain as oil prices rose and
data showed Canada posting a current account surplus for the
first time since 2008.
Canada’s current account balance was a surplus of C$1.2
billion in the first quarter, from a revised C$5.3 billion
deficit in the fourth quarter of 2020, on a higher trade in
goods and services, Statistics Canada said.
The price of oil, one of Canada’s major exports, was
supported by the bright outlook for fuel demand growth in the
next quarter, while investors looked ahead to the OPEC+ meeting
this week to see how producers will respond. U.S. crude
rose 1.4% to $67.27 a barrel.
The Canadian dollar was trading 0.1% lower at 1.2077
to the greenback, or 82.80 U.S. cents, having traded in a range
of 1.2061 to 1.2090. Since the start of the month, the currency
has advanced 1.8%, extending a string of monthly gains that
started in February.
Still, speculators have cut their bullish bets on the
Canadian dollar for the first time in six weeks, data from the
U.S. Commodity Futures Trading Commission showed on Friday.
With London and New York markets closed for a holiday on
Monday, the U.S. dollar was little changed against a basket of
Canada’s GDP data for the first quarter is due on Tuesday
and the May jobs report is due on Friday, which could offer
clues on the Bank of Canada’s policy outlook.
The central bank is likely to cut its bond-buying program
again this year, possibly as soon as July, analysts said.
Canadian government bond yields edged lower across the
curve, with the 10-year down about half a basis
point at 1.499%.