The Canadian dollar weakened on Monday, affected by the US dollar’s surge and disappointing Chinese export data.
Official figures showed China’s export sales dwindled 15% in March. Although oil prices increased, these were not sufficient to push the loonie higher. US crude prices gained 0.7% to $52 a barrel, while Brent crude added 0.2% to $58 a barrel.
We will remain in a bit of range before Wednesday “and people waiting to see what the Bank (of Canada) will say,” said Mark Chandler, Head of Canadian Fixed Income and Currency Strategy at RBC Capital Markets.
The loonie closed at C$1.2592 per greenback or 79.42 U.S. cents, from Friday’s C$1.2580 or 79.49 US cents.
The Canadian dollar has erased nearly 0.9% over the last week.
Meanwhile, markets will await BOC’s April rate decision and Monetary Policy report due Wednesday.
The material has been provided by InstaForex Company – www.instaforex.com