Tuesday, 10 November 2015 19:59
TORONTO: The Canadian dollar was slightly weaker against the US dollar on Tuesday, as crude oil prices slipped and weak Chinese inflation data fed concern about the global growth outlook.
At 8:49 a.m. ET (1349 GMT), the Canadian dollar was trading at C$ 1.3286 to the greenback, or 75.27 US cents, slightly weaker than the Bank of Canada’s official close of C$ 1.3275, or 75.33 US cents on Monday.
The currency’s strongest level of the session was C$ 1.3250, while its weakest level was C$ 1.3290, trading in a tight range. The bond market closes early ahead of Wednesday’s national Remembrance Day holiday.
US stock index futures traded lower as investors worried about the potential for slower global growth in tandem with the start of Federal Reserve policy tightening as soon as December.
China’s consumer price index inflation cooled more than anticipated in October, slowing to +1.3 year on year. It followed disappointing trade data over the weekend.
US crude prices gave up earlier gains and slipped 0.11 percent to $ 43.82 a barrel, while Brent crude eased 0.15 percent to $ 47.12.
Medium term investors will also take note of a potential acquisition by Canadian Pacific Railway Ltd of US peer Norfolk Southern Corp, after news of preliminary merger talks emerged on Monday.
Bank of Canada Senior Deputy Governor Carolyn Wilkins will deliver introductory remarks for David Dodge, former Bank of Canada Governor, and of George Akerlof, Professor at Georgetown University at an event in Toronto at 11:55 a.m. ET (1655 GMT), although the remarks will not be published and there is no press conference scheduled.
The market will also be looking ahead to comments from Federal Reserve Bank of Chicago President Charles Evans, speaking after the close. Evans is seen by many in the market as a dove, so any pointer to a December rate hike may carry meaningful weight for the market.
Canadian government bond prices were higher across the maturity curve, with the two-year price up 2.5 Canadian cents to yield 0.66 percent and the benchmark 10-year rising 1 Canadian cent to yield 1.717 percent.
The Canada-US two-year bond spread was unchanged at -21.4 basis points, while the 10-year spread was 0.5 of a basis point narrower at -61.8 basis points.
