CANADA FX DEBT-C$ steadies as merchants shirk threat forward of BoC fee resolution

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Touches its strongest since Jan. 13 at 1.3343

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Value of U.S. oil settles 2 cents decrease

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10-year yield touches a one-week excessive at 2.904%

(Provides analyst quotes and particulars all through; updates costs)

By Fergal Smith

TORONTO, Jan 23 (Reuters) – The Canadian greenback was little modified towards its U.S. counterpart on Monday as buyers held off from making main bets forward of a Financial institution of Canada rate of interest resolution this week, with the end result seen as unsure.

The loonie was buying and selling practically unchanged at 1.3380 to the buck, or 74.74 U.S. cents after touching its strongest intraday stage since Jan. 13 at 1.3343 – a stage that was not far off its strongest since November.

“The Canadian greenback treads water close to two-month highs regardless of energy from different commodity currencies,” stated Michael Goshko, senior market analyst at Convera Canada.

“Merchants are doubtless unwilling so as to add to positions till they see the Wednesday Financial institution of Canada financial coverage resolution and steering.”

The Australian greenback rose 0.8%. Australia, like Canada, is a serious producer of commodities.

Cash markets see a 70% likelihood that Canada’s central financial institution will increase its benchmark rate of interest by 25 foundation factors to a 15-year excessive of 4.50% at a coverage announcement on Wednesday.

The BoC will provide minutes from its policy-setting assembly for the primary time in its historical past, a transfer some analysts say will assist restore credibility misplaced final yr amid hovering inflation and encourage out-of-the-box pondering.

Wall Avenue shares climbed in the beginning of one other massive week for company earnings, whereas the worth of oil, one among Canada’s main exports, largely held on to its current positive factors, settling 2 cents decrease at $81.62 a barrel.

Speculators have lower their bearish bets on the Canadian greenback, knowledge from the U.S. Commodity Futures Buying and selling Fee confirmed on Friday.

Canadian authorities bond yields had been greater throughout the curve on Monday, monitoring the transfer in U.S. Treasuries.

The ten-year touched its highest stage since final Monday at 2.904% earlier than dipping to 2.883%, up 3.7 foundation factors on the day. (Reporting by Fergal Smith; modifying by Jonathan Oatis)