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The Canadian dollar CADUSD edged lower against its U.S. counterpart on Monday as the greenback broadly climbed and investors awaited domestic inflation data later in the week.

Canada’s consumer price index report for March, due on Wednesday, could help guide expectations for further tightening from the Bank of Canada.

Last Wednesday, the central bank raised its benchmark interest rate by half a percentage point to 1 per cent, its biggest single hike in more than two decades, in an effort to limit inflation.

The Federal Reserve is also expected to move aggressively to tackle inflation, which helped underpin the U.S. dollar against a basket of major currencies.

Meanwhile, U.S. crude oil futures rose 1.1 per cent to $108.17 a barrel as outages in Libya deepened worries over tight global supply and the Ukraine war continued, offsetting the impact of concern over slowing Chinese demand.

The Canadian dollar was 0.1 per cent lower at 1.2625 to the greenback, or 79.21 U.S. cents, after trading in a range of 1.2609 to 1.2644.

Speculators have raised their bullish bets on the Canadian dollar to the highest in four weeks, data from the U.S. Commodity Futures Trading Commission showed on Friday. As of April 12, net long positions had increased to 12,158 contracts from 6,923 in the prior week.

The loonie has gained 0.1 per cent since the beginning of the year, trailing only the Australian dollar among G10 currencies.

Canadian government bond yields edged lower across much of the curve. The 10-year touched its highest level since June 2014 at 2.798 per cent before dipping to 2.764 per cent, down 1.1 basis points on the day.

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Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 25/04/24 1:47am EDT.

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Canadian Dollar/U.S. Dollar

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