Adds details throughout, updates prices
Loonie trades in a range of 1.3405 to 1.3445
Price of U.S. oil settles 3.05% higher
10-year yield hits a three-week low
TORONTO, Jan 11 (Reuters) – The Canadian dollar was little changed against its U.S. counterpart on Wednesday, consolidating its recent gains for a second day, as oil prices climbed and investors awaited a key U.S. inflation report.
The loonie CAD= was trading nearly unchanged at 1.3420 per U.S. dollar, or 74.52 U.S. cents, after moving in a range of 1.3405 to 1.3445.
It follows a modest decline for the currency on Tuesday after touching a six-week high at 1.3355 on Monday.
Supporting the currency, domestic jobs data last Friday raised expectations for additional tightening by the Bank of Canada later this month and risk appetite has improved since the start of the year.
The S&P 500.SPX advanced on Wednesday to a four-week high as investors were optimistic ahead of U.S. consumer price index data on Thursday that could give the Federal Reserve room to dial back its aggressive interest rate hikes.
The price of oil, one of Canada’s major exports, rose for a fifth consecutive day as hopes for an improved global economic outlook and concern over the impact of sanctions on Russian crude output outweighed a massive surprise build in U.S. crude stocks.
U.S. crude oil futures CLc1 settled 3.05% higher at $77.41 a barrel.
Canadian government bond yields fell across a flatter curve. The 10-year CA10YT=RR was down 11.2 basis points at 3.008%, its lowest level since Dec. 21.
(Reporting by Fergal Smith Editing by Tomasz Janowski and Deepa Babington)
((fergal.smith@thomsonreuters.com; +1 647 480 7446;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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