US Markets

Loonie holds near 6-week high amid upbeat economic data

Credit: REUTERS/Thomas White

The Canadian dollar was little changed against its U.S. counterpart on Wednesday, holding near a six-week high it notched the day before, as oil prices rose and domestic data showed higher than expected industrial capacity usage.

* Canadian dollar trades in a range of 1.3140 to 1.3160

* Canadian industrial capacity usage rose to 83.3% in Q2

* Price of U.S. oil increases 0.4%

* Canada's 10-year yield touches a near six-week high at 1.442%

TORONTO, Sept 11 (Reuters) - The Canadian dollar was little changed against its U.S. counterpart on Wednesday, holding near a six-week high it notched the day before, as oil prices rose and domestic data showed higher than expected industrial capacity usage.

Canadian industries ran at 83.3% of capacity in the second quarter of 2019, up from an upwardly revised 81.1% in the first quarter, Statistics Canada said. Economists had forecast a rate of 81.8%.

The jump in capacity usage adds to the recent batch of upbeat economic reports. Last week, the Bank of Canada held its benchmark interest rate unchanged at 1.75% and made no mention of future rate cuts despite easing this year by many of its global peers, including the U.S. Federal Reserve.

Meanwhile, the price of oil, one of Canada's major exports, rose after a reported sharp drop in U.S. crude stocks and OPEC member Iraq said the producer group would discuss deepening output cuts amid ongoing demand concerns.

U.S. crude oil futures were up 0.4% at $57.63 a barrel.

At 9:10 a.m. (1310 GMT), the Canadian dollar was trading nearly unchanged at 1.3156 to the greenback, or 76.01 U.S. cents. The currency, which posted on Tuesday its highest intraday level since July 31 at 1.3134, traded in a range of 1.3140 to 1.3160.

The narrow trading band for the loonie came as foreign exchange traders awaited a key European Central Bank meeting on Thursday, with the scale of an expected monetary easing package from euro zone policymakers uncertain.

Canadian government bond prices were mixed across the yield curve, with the two-year up 2.5 Canadian cents to yield 1.584% and the 10-year falling 1 Canadian cent to yield 1.429%.

The 10-year yield touched its highest intraday level since Aug. 1 at 1.442%.

(Reporting by Fergal Smith Editing by Nick Zieminski) ((fergal.smith@thomsonreuters.com; +1 416 941 8113;)) Keywords: CANADA FOREX/

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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