Canadian Dollar Steady as Investors Eye U.S. Retail Data and BoC Rate Decisions

In Toronto, the Canadian dollar remained nearly unchanged against the U.S. dollar on Tuesday, trading at 1.3720 to the U.S. dollar (72.89 U.S. cents). Investors are assessing softer-than-expected U.S. retail sales data while anticipating potential signals on additional interest rate cuts from the Bank of Canada (BoC). The BoC recently became the first G7 central bank to cut interest rates, with minutes from the June 5 policy decision expected on Wednesday. The U.S. dollar fell against major currencies due to weak retail sales, suggesting possible Federal Reserve rate cuts later this year. Despite speculators increasing bearish bets on the Canadian dollar, oil prices, a key Canadian export, rose by 1.5% to $81.57 per barrel. Canadian government bond yields also decreased, in line with U.S. Treasury movements.