TORONTO - The Canadian dollar was little changed against the greenback Monday morning as commodity prices backed off following solid gains last week and traders looked to Tuesday's interest rate announcement from the Bank of Canada.
The currency was up 0.03 of a cent to 104.48 cents US.
"The market is reluctant to push (the loonie) either way ahead of tomorrow?s Bank of Canada rate decision and accompanying statement," said CanadianForex vice-president John Curran.
Traders widely expect the central bank to leave its key rate unchanged at one per cent but will be looking to its accompanying statement for its take on the economy and the impact of a rapidly rising loonie, which started the year just above par with the U.S. dollar.
Oil prices relaxed somewhat and the May contract fell $1.14 to US$111.65 a barrel. Prices are still up about 29 per cent from mid-February to two and a half year highs amid a civil war in Libya and unrest in other Mideast countries.
Copper prices were also lower following a jump of almost six per cent last week with the May contract on the Nymex down two cents to US$4.48 a pound.
Bullion moved slightly below Friday's latest record close with the June contract in New York $5.60 lower to US$1,468.50.
There?s a raft of other economic data this week, including Canadian international trade and manufacturing shipment data as well as U.S. retail sales and industrial production figures and China?s first estimate for economic growth in the first quarter of the year.
Expectations of the latter may be negatively affected by the news that China posted a trade deficit in the first three months of the year, its first since 2004. Higher commodity and energy costs as well as the country?s insatiable demand for raw materials were the main reasons behind the deficit.
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