TORONTO: The Canadian dollar slipped modestly against a broadly stronger US dollar on Monday and softer crude prices, but was stronger against all other major currencies after last week's rally.
The loonie on Friday touched its strongest level since January following better-than-forecast domestic data and a more hawkish tone from the Bank of Canada.
The stronger greenback, which makes dollar-traded commodities like oil less attractive for holders of other currencies, dented the price of crude, while news that production in Saudi Arabia, the world's biggest crude exporter, would stay near record levels, also weighed on prices. Canada is a major exporter of oil and sensitive to the price moves.
* At 9:08 a.m. EDT (1308 GMT), the Canadian dollar was trading at C$1.2236 to the greenback, or 81.73 US cents, a slight dip from the Bank of Canada's official close of C$1.2228, or 81.78 US cents on Friday.
The currency traded between C$1.2180 and C$1.2260 on Monday.
Bank of Canada Governor Stephen Poloz and New York Federal Reserve President William Dudley both speak on Monday at Bloomberg's monetary summit on Monday. Poloz will talk about "Navigating the Commodities Supercycle".
US crude prices were down 0.61 percent to $55.4, while Brent crude lost 0.90 percent to $62.88.
The Canadian dollar is expected to trade between C$1.2180 and C$1.2300 against the US dollar on Monday, according to RBC Capital Markets.
Canadian government bond prices were mixed across the maturity curve, with the two-year price up 0.5 Canadian cent to yield 0.625 percent and the benchmark 10-year falling 1 Canadian cent to yield 1.407 percent.
The Canada-US two-year bond spread was 11.3 basis points, while the 10-year spread was -46.3 bps.
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