C$ rallies along with stocks; BoC decision due Wednesday - Reuters News

Canadian dollar rises 0.3% against the greenback

Canadian producer prices gained 0.4% in June

Price of U.S. oil falls 0.4%

Canadian bond yields rise across much of a steeper curve

TORONTO, July 13 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Monday as stock markets globally climbed and ahead of an interest rate decision this week from the Bank of Canada, with the loonie recovering from a 10-day low on Friday.

World shares were approaching a five-month peak as investors wagered the earnings season would see most companies beat forecasts given expectations had been lowered by coronavirus lockdowns. (Full Story)

Canada runs a current account deficit and is a major exporter of commodities, so the loonie tends to sensitive to the global flow of trade and capital.

U.S. crude CLc1 prices were down 0.4% at $40.37 a barrel, pressured by a record daily rise in global coronavirus cases with big spikes in infections over the weekend in the United States. (Full Story)

The Canadian dollar CAD= was trading 0.3% higher at 1.3545 to the greenback, or 73.83 U.S. cents, its strongest level of the session. On Friday, the loonie hit a 10-day low at 1.3631.

Speculators have cut their bearish bets on the Canadian dollar for the third straight week, data from the U.S. Commodity Futures Trading Commission showed on Friday. As of July 7, net short positions had decreased to 16,818 contracts from 20,519 in the prior week.

The BoC is widely expected to leave its benchmark interest rate at a record low of 0.25% on Wednesday. Much of the focus will be on the central bank's outlook for the economy.

On Friday, data showed that the economy added nearly one million jobs in June as firms reopened following closures triggered by COVID-19. (Full Story)

Canadian government bond yields were higher on Monday across much of a steeper curve, with the 10-year CA10YT=RR up 2.6 basis points at 0.575%.

Producer prices in Canada gained 0.4% in June from May, primarily on higher prices for energy and petroleum products, Statistics Canada said in a preliminary flash estimate.

Canada June industrial prices rise on higher energy prices: Statscan flash estimate - Reuters

OTTAWA, July 13 (Reuters) - Producer prices in Canada gained 0.4% in June from May, primarily on higher prices for energy and petroleum products, Statistics Canada said on Friday in a preliminary flash estimate.

Energy and petroleum prices jumped 11.7%, the agency said, largely led by an increase in refined petroleum products, including gasoline, light fuel oils and diesel fuel.

Excluding energy and petroleum products, the industrial product price index fell 0.6%, mostly due to lower prices for motorized recreational vehicles, electronics and pulp and paper products, Statscan said.

Year-over-year, June producer prices fell 3.1%, the agency noted.