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
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Trades in a range of 1.3675 to 1.3706
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Price of oil dips 0.1%
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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)
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