CANADA FX DEBT-Canadian dollar edges higher ahead of domestic GDP data

BY Reuters | ECONOMIC | 02/25/26 02:32 PM EST

*

Canadian dollar gains 0.2% against the greenback

*

Trades in a range of 1.3675 to 1.3706

*

Price of oil dips 0.1%

*

10-year yield steadies near a multi-month low

By Fergal Smith

TORONTO, Feb 25 (Reuters) - ?The Canadian dollar strengthened against its U.S. counterpart ?on Wednesday but the move was limited ahead of expected trade negotiations between Canada and the ?United States as well as domestic gross domestic product data due ?this week.

The loonie was trading 0.2% higher ?at 1.3677 per ?U.S. dollar, or 73.12 U.S. cents, after moving in a range of 1.3675 to 1.3706. It ?touched on Tuesday a near ?three-week low at 1.3724.

"Friday's fourth-quarter GDP print remains the key domestic event," strategists at Monex Europe said in a note. "We ?see underlying growth momentum holding up, ?reinforcing ?our expectation that the BoC will stay on hold for now."

Economists expect a flat reading for fourth-quarter GDP, due on Friday. That ?would match the Bank of Canada's projection in January when ?it left the benchmark interest rate on hold at 2.25%.

U.S. and Canadian trade officials spoke on Wednesday and plan to meet in coming weeks, U.S. Trade Representative Jamieson Greer said, adding that the Trump ?administration ?was open to their ideas on how to reach ?an agreement.

U.S.-Canada tensions have grown in recent months over trade and other ?issues. The United States-Mexico-Canada Agreement, a continental trade pact that has shielded much of Canada's exports from U.S. tariffs, is set for review by a July 1 deadline. The price of oil one of Canada's major exports, fell 0.1% to $65.57 a barrel as a much larger-than-expected U.S. crude stock build offset a ?potential military conflict between the U.S. and Iran.

Canadian bond yields were mixed across the curve. The 10-year was little changed at 3.188%, holding ?near a multi-month low it touched ?on Tuesday at 3.173%. (Reporting by Fergal Smith; ?Editing by Alistair Bell)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

fir_news_article