The Canadian dollar strengthened against its US counterpart on Monday even as US oil prices pulled back from a two-year high, as the greenback broadly extended recent losses. At 8:56 am ET (1356 GMT), the Canadian dollar was trading at C$1.2681 to the greenback, or 78.86 US cents, its strongest level of the session and up 0.2 percent. It had gained 0.4 percent last week. The currency's weakest level was C$1.2722.
The Bank of Canada is due to release its semi-annual Financial System Review on Tuesday, while currency strategists are also looking ahead to a monthly employment report and quarterly gross domestic product data due on Friday after weak retail sales numbers last week. US crude prices were down 0.95 percent to $58.39 a barrel, while Brent crude lost 0.25 percent. The Canadian dollar was slightly stronger against the euro and weaker versus the Japanese yen.
Canadian government bond prices were mixed across the maturity curve, with the two-year price down half a Canadian cent to yield 1.443 percent and the benchmark 10-year rising 3 Canadian cents to yield 1.885 percent. The Canada-US two-year bond spread was -31 basis points, while the 10-year spread was -44.5 basis points.
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