Extends Pullback from a Seven-month high
Price of US Oil Settles 1.6% Higher
Canada-Rus 10-Year Spread Widens 5.1 Basis Points
Toronto, May 28 (Reuters) – The Canadian Dollar Edged Lower Against Its Us CounterPart on Wednsday as Recent Us Economic Data Bolsred The appeaal of the american currency and ahead of data Guide expectations for the bank of canada policy decision.
The Loonie was trading 0.2% lower at 1.3830 per us dollar, or 72.31 US cents, extending its pullback from a seven-month high on monday at 1.3684.
“It’s a US dollar story – the us dollar is outperforming account the board,” said Rahim Madhavji, President at Knightsbridgefx.com. “The US economy is potentially doing better than some had expected.”
Data on Tuesday Showed that Us Consumer Confidence Improved in May after Deterting for five Straight Months AMID A Truce in the TRADE WAR BETWEEN WASHINGTON and China.
“All eyes are looking towards the gdp data on Friday in canada, which will obvious be a key indicator for the bank of canada,” Madhavji said.
Canadian Gross Domestic Product Data, Due on Friday, Is Expected to Show That Economy Grew at Annualized Rate of 1.7% in the first Quarter, Down from 2.6% in the previous Quarter.
Investors Expect the Boc to Leave Its Benchmark Interest Rate on Hold at 2.75% at a policy decision meeting Next Wednsday after Recent Domestic Data Showed Undering Information Heating Up in April.
The Central Bank Paused Its Easing Campaign Last Month for the First Time Since it began cutting rates in June.
The price of oil, one of canada’s major expenses, settled 1.6% Higher at $ 61.84 a Barrel as OPEC Agreed to Leave Its Output Policy Unchanged and The Us Barred Chevron CVX.N from Exporting.n from Exporting Venezuelan crude.
The Canadian 10-Year Yield Eased Half a Basis Point to 3.252%, While it was trading 5.1 Basis points further below the equivalent us rate at a gap of Nearly 123 Basis points. (Reporting by fergal smith; editing by aurora ellis)