The Canadian dollar CADUSD edged lower against its U.S. counterpart on Monday, with the currency pulling back from an earlier two-week high, as equity markets fell and investors braced for the potential start of Bank of Canada interest rate cuts.
The loonie was trading 0.1 per cent lower at 1.3645 to the U.S. dollar, or 73.29 U.S. cents, after touching its strongest intraday level since May 20 at 1.3604.
“It looks like the softer U.S. manufacturing data weighing on equities ultimately has won out on the session and given the CAD a turn back lower,” said Amo Sahota, a director at Klarity FX in San Francisco.
Wall Street’s main indexes fell in choppy trading after data showed that U.S. manufacturing activity slowed for a second straight month in May. Canada is a major producer of commodities, including oil, so the loonie tends to be sensitive to shifts in investor sentiment.
U.S. crude oil futures settled down 3.6 per cent at $74.22…
