The Canadian dollar slipped against the US currency on Friday as it faced a rangebound session with no economic data to guide on either side of the border, but geopolitical concern could be the major influence.
Bonds were also little changed in a quiet session. At 8:45 am, the Canadian currency was at C$1.3198to the US dollar or 75.77 US cents, down slightly from C$1.3169 to the US dollar, or 75.94 US cents, at Thursday's close.
Without data for hints on direction, there was also time to further mull positions on when the Bank of Canada may raise interest rates. On Thursday's session, the market interpreted the central bank's Monetary Policy Report Update as a clearer sign that the bank is poised for a period of higher rates.
Most market players expect a rate hike in September, but some see the central bank holding off until October.
"The Bank of Canada really hasn't given us anything to trade off of. I would have to say that the currency is going to stay in a range. A lot is going to depend on geopolitical concerns, and a lot will depend on the US dollar," said David Ebata, managing analyst at Thomson IFR.
He said the Canadian dollar could see a range between C$1.3170 and C$1.3250. The US currency, meanwhile, remained buoyant after the US Federal Reserve Chairman Alan Greenspan's rosy assessment of the economy this week bolstered expectations that US rate hikes will be gradual.
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