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The Canadian dollar edged higher against the greenback on Monday as risk sentiment improved, but held in the middle of its tight recent range as investors continued to focus on the fallout of the US-China trade war. The Canadian dollar was last up 0.14% at 1.3260 to the greenback. It has held between 1.3248 and 1.3344 since August 15.

Ten-year Canadian bond yields rose to 1.21% from 1.17% late on Friday. The United States and China sought to ease tensions on Monday, with Beijing calling for calm and US President Donald Trump predicting a trade deal after markets fell in response to new tariffs from both countries. That boosted risk sentiment, sending stock prices higher, and gave a modest boost to the Canadian currency. Ongoing concerns about the trade dispute, however, may cap further gains. Canada exports many commodities, including oil, so its economy could be hurt by a slowdown in the flow of global trade.

Copyright Reuters, 2019


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