Canadian Dollar Lower on Oil Drop and US Tax Wishes

The Canadian dollar had a negative trading session on Monday. The loonie was pressured downwards as the price of oil retreated and the USD advanced on the hopes President Trump will present a tax reform plan this week. The results of the first round of French presidential elections sparked an appetite in riskier assets hurting Canadian bonds as investors sold fixed income looking for higher yields.

Canadian wholesale data showed a step back of 0.2 percent in February. This is the first contraction after four straight months of gains. The forecast had anticipated a larger drop but the indicator did little to help the dollar. Wednesday’s release of retail sales will have a higher impact as the gap between the US and the Canadian economy widens.