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Forex - Canadian dollar little changed in risk-off trade

Published 03/20/2017, 09:38 AM
Updated 03/20/2017, 09:38 AM
© Reuters.  Canadian dollar little changed in risk-off trade

© Reuters. Canadian dollar little changed in risk-off trade

Investing.com - The Canadian dollar was little changed against its U.S. counterpart in risk-off trade on Monday in the wake of the G20 meeting at the weekend which renewed concerns over the U.S. administration’s protectionist stance on trade.

USD/CAD was at 1.3353 by 09.31 ET, almost unchanged for the day.

The greenback remained on the defensive after G20 financial leaders dropped a pledge to keep global trade free and open from a policy statement at the weekend, following opposition from the increasingly protectionist Trump administration.

The move revived uncertainty about U.S. trade relations and by extension the U.S. administrations concerns over the strong dollar.

The U.S. dollar was already under pressure as expectations of a slower pace of U.S. interest rates hikes than some investors had anticipated weighed.

The Federal Reserve hiked rates last week, but stuck to its projection for two more hikes this year. Heading into the meeting, markets had braced for a potentially more hawkish tone from the U.S. central bank.

Investors were gearing up for a week in which no less than nine Fed officials were to speak, including Fed Chair Janet Yellen on Thursday.

Chicago Fed President Charles Evans said Monday the Fed is on track to raise rates twice more this year and could be more or less aggressive depending on fiscal policies and other effects on the economy.

In Canada, data on Monday showed that domestic wholesale sales unexpectedly jumped 3.3% in January the largest increase in more than seven years, boosted by stronger sales of auto vehicles and parts.

Economists had forecast a more modest increase of 0.4%.

The loonie, as the Canadian dollar is known, remained under pressure from lower prices for oil, a major Canadian export.

Oil prices fell more than 1% on Monday amid concerns over rising U.S. output at a time when other major producers are cutting production in a bid to reduce a global supply glut.

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