Market News
Canadian dollar weakens as US tech stocks slide - REUTERS
By Fergal Smith
- Canadian dollar falls 0.1% against the greenback
- Trades in a range of 1.3657 to 1.3701
- 10-year yield hits a 3-week low at 3.331%
TORONTO, July 17 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Wednesday as risk appetite faded and after Canadian inflation data the previous day raised prospects of the Bank of Canada cutting interest rates further next week.
The loonie was trading 0.1% lower at 1.3690 to the U.S. dollar, or 73.05 U.S. cents, after trading in a range of 1.3657 to 1.3701.
"CAD is weaker on some equity weakness and lingering concerns about a rate cut next week after yesterday's CPI data," said Erik Bregar, director, FX & precious metals risk management at Silver Gold Bull.
Some major U.S. stock indexes, including the Nasdaq, tumbled as the prospect of tighter China-focused U.S. trade curbs weighed on megacap chip and tech stocks.
Canada is a major producer of commodities so the currency tends to be sensitive to shifts in investor sentiment.
Money markets are pricing in a near 90% chance the BoC will cut rates for a second straight meeting at a policy announcement on July 24 after data on Tuesday showed Canada's annual inflation rate cooling to 2.7% in June from 2.9% in May.
Canadian retail sales data for May, due on Friday, could offer further clues on prospects for additional easing. Economists expect a monthly decline of 0.6%.
The price of oil , one of Canada's major exports, was up 2.5% at $82.79 a barrel but some other commodities, such as copper , headed lower.
Canadian bond yields were mixed across a flatter curve. The 10-year eased 1.5 basis points to 3.340%, after earlier touching its lowest level since June 25 at 3.331%.
