Skip to main content

The Canadian dollar edged higher against its U.S. counterpart on Tuesday, with the currency recovering from an earlier five-day low as easing of global trade tensions raised investor risk appetite.

The United States government will delay imposing a 10 per cent tariff on certain Chinese goods, including laptops and cell phones, that had been scheduled to start next month, the Office of the U.S. Trade Representative said.

“The news that some parts of the tariff list will be delayed is constructive for risky assets and the Canadian dollar is taking its cue from that,” said Bipan Rai, North America head of FX strategy at CIBC Capital Markets

Story continues below advertisement

Canada runs a current account deficit and exports many commodities, including oil, so its economy could be hurt by a slowdown in the global flow of trade or capital.

U.S. crude oil futures settled 4 per cent higher at $57.10 a barrel as easing trade tensions reduced global demand concerns.

At 3:10 p.m., the Canadian dollar was trading 0.2 per cent higher at 1.3222 to the greenback, or 75.63 U.S. cents. The currency’s strongest intraday level was 1.3185, while it touched its weakest since last Thursday at 1.3293.

Canadian government bond prices were lower across a flatter yield curve in sympathy with U.S. Treasuries, as trade tensions eased and data showed a pick-up in U.S. inflation.

The two-year fell 9 cents to yield 1.376 per cent and the 10-year was down 30 cents to yield 1.23 per cent.

The 10-year yield fell 1.7 basis points further below the 2-year yield to a spread of -14.6 basis points, the curve’s largest inversion since June 2000.

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.

Report an error
Tickers mentioned in this story
Unchecking box will stop auto data updates
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

Cannabis pro newsletter