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Loonie trades in a range of 1.4183 to 1.4244

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Speculators cut bearish bets on the currency

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Price of U.S. oil settles 0.4% higher

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Bond yields ease across the curve

By Fergal Smith

TORONTO, Feb 24 (Reuters) - The Canadian dollar steadied

against its U.S. counterpart on Monday, extending its recent

sideways trading pattern, as investors awaited greater clarity

on prospects of U.S. trade tariffs and additional easing from

the Bank of Canada.

The loonie was trading unchanged at 1.4220 per U.S.

dollar, or 70.32 U.S. cents, after moving in a range of 1.4183

to 1.4244.

The currency has recovered from a 22-year low of 1.4793 on

February 3 but gains have stalled since mid-month.

Uncertainty about tariffs and the next Bank of Canada policy

decision has contributed to "the recent choppy, sideways trading

in the currency," said Tony Valente, senior FX dealer at

AscendantFX.

Canada and Mexico are expected to intensify efforts this

week to avoid punishing 25% tariffs on their exports to the U.S.

in talks to persuade President Donald Trump's administration

that their steps to increase border security and curb fentanyl

trafficking are working ahead of a March 4 deadline.

On Friday, BoC Governor Tiff Macklem said tariffs and

subsequent retaliation from Canada could almost wipe out any

domestic growth in 2025 and 2026 and cause a one-time spike in

inflation.

Investors see a 37% chance that the central bank would cut

its benchmark interest rate by a further 25 basis points at a

policy announcement on March 12 after the rate was lowered last

month to 3%.

Speculators have reduced their bearish bets on the Canadian

dollar, data from the U.S. Commodity Futures Trading Commission

showed on Friday. As of February 18, net short positions had

decreased to 144,643 contracts from 150,834 in the prior week.

The price of oil, one of Canada's major exports,

settled 0.4% higher at $70.70 a barrel as investors awaited

clarity on talks to end the war in Ukraine.

Canadian bond yields edged lower across the curve. The

10-year was down 1.2 basis points at 3.096%.