The Canadian dollar was little changed against its generally stronger U.S. counterpart on Thursday as oil prices rose and traders managed their positions ahead of large amounts of options expiring.
The loonie was trading almost unchanged at 1.37 per US dollar, or 72.99 US cents, after hitting its strongest intraday level since June 12 at 1.3685.
“You’re kind of stuck in the mud here because of this big options expiry tomorrow,” said Erik Bregar, head of currency and precious metals risk management, at Silver Gold Bull. “We are seeing coverage from distributors around that event.”
Options on the Canadian dollar with a notional value of $1.2 billion and strikes between 1.3710 and 1.3720 expire on Friday.
The dollar rose against a basket of major currencies as French political uncertainty weighed on the euro, while the price of oil, one of Canada’s main exports, rose to seven-week highs. U.S. crude futures rose 0.7% to $82.15 a barrel.
Canadian retail sales data for April, due Friday, could offer clues about the strength of the national economy. Economists expect a sales increase of 0.7% compared to March.
Canadian bond yields rose across the curve, tracking moves in U.S. Treasuries. The 10-year bond rose 4.4 basis points to 3.339%, extending its rebound from Tuesday’s four-month low of 3.258%. (Reporting by Fergal Smith; Editing by Leslie Adler)
