Canadian dollar sticks to tight range ahead of Poloz speech

The Canadian dollar strengthened against the greenback on Monday as global stocks rose, but the loonie traded in a narrow range as U.S. financial markets were closed for a public holiday and ahead of a speech by Bank of Canada Governor Stephen Poloz.

A survey showing German business morale rebounded in May boosted investor sentiment. Shares globally gained 0.4 per cent, while U.S. crude futures were up 0.60 per cent at $33.45 a barrel.

Oil is one of Canada’s major exports.

The Canadian dollar was trading 0.1 per cent higher at 1.3985 to the greenback, or 71.50 U.S. cents. The currency, which rose 0.8 per cent last week, traded in a range of 1.3972 to 1.4007.

Poloz, who is retiring next Monday, will speak on monetary policy at 1:30 p.m. (1530 GMT). Last week, he said Canada was still on track to meet the best-case scenario for recovery that the central bank released in April.

Since March, the Bank of Canada has slashed its benchmark interest rate to a record low of 0.25 per cent and begun its first ever large-scale bond-buying program.

Canadian government bond yields were mixed across a flatter curve, with the 10-year yield down 1.1 basis points at 0.496 per cent.

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