XM does not provide services to residents of the United States of America.

C$ climbs to 3-week high as BoC eyes soft landing

<html xmlns="http://www.w3.org/1999/xhtml"><head><title>CANADA FX DEBT-C$ climbs to 3-week high as BoC eyes soft landing</title></head><body>

Canadian dollar gains 0.3% against the greenback

Touches its strongest since June 4 at 1.3651

Price of U.S. oil settles 1.1% higher

Canadian bond yields trade mixed across the curve

By Fergal Smith

TORONTO, June 24 (Reuters) -The Canadian dollar strengthened to a near three-week high against its U.S. counterpart on Monday as investors took stock of recent broad-based gains for the greenback and the Bank of Canada said the economy could grow as inflation cools.

The loonie CAD= was trading 0.3% higher at 1.3651 to the U.S. dollar, or 73.25 U.S. cents, its strongest level since June 4.

"We are seeing a little bit of position squaring," said Michael Goshko, senior market analyst at Convera Canada. "Traders are very long of U.S. dollars."

The U.S. dollar .DXY pulled back from a seven-week against a basket of major currencies, while the price of oil, one of Canada's major exports, settled 1.1% higher at $81.63 a barrel.

There isenough slack in the Canadian labor market to allow for growth and the creation of more jobs even as the inflation rate continues to decline, said Bank of Canada Governor Tiff Macklem.

"Governor Macklem believes that a soft landing is still in the cards," Tiago Figueiredo, a macro strategist at Desjardins, said in a note.

Canada's consumer price index report, due on Tuesday, is expected to show inflation easing to an annual rate of 2.6% in May from 2.7% in April.

Data in line with expectations could make a rate cut next month "a virtual certainty," Convera Canada's Goshko said.

Investors see a 72% chance that the BoC would cut interest rates further at the next policy decision on July 24, swaps market data shows. 0#BOCWATCH

Earlier this month, the BoC became the first G7 central bank to ease policy, cutting its benchmark rate by 25 basis points to 4.75%.

Canadian government bond yields were mixed across a more deeply inverted curve. The 2-year CA2YT=RR was up 1.8 basis points at 3.941%.

Reporting by Fergal Smith
Editing by Marguerita Choy


Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.