The US dollar climbed against a basket of major currencies after a surge in support for the far right in German elections weighed on the euro. At 9:19 am ET (1319 GMT), the Canadian dollar was trading at C$1.2316 to the greenback, or 81.20 US cents, up 0.2 percent. The currency traded in a range of C$1.2314 to C$1.2350.
The loonie fell 1.2 percent against the US dollar last week after a Bank of Canada policymaker said the currency's strength would be a factor in future interest rate decisions. All eyes are now on Poloz's speech on Wednesday, with the market expecting him to keep the dollar in check without opening himself to charges from global peers that he is manipulating the currency.
The currency has climbed 9 percent this year. Speculators have meanwhile raised bullish bets on the loonie, data from the US Commodity Futures Trading Commission and Reuters calculations showed on Friday. As of September 19, Canadian dollar net long positions had climbed to 58,846 contracts, the highest in six weeks, from 50,499 contracts a week earlier.
US trade negotiators will only partially unveil new text on modifying a key chapter on investment under NAFTA, two well-placed sources said on Sunday, underlying the cautious pace of talks that are supposed to wrap up by the end of the year. Canadian government bond prices were mixed across the yield curve, with the two-year down 1 Canadian cent to yield 1.611 percent and the 10-year falling 4 Canadian cents to yield 2.117 percent. The gap between Canada's 10-year yield and its US equivalent narrowed by 1.5 basis points to a spread of -13.5 basis points.
Copyright Reuters, 2017