Canadian dollar steady, await US data

The Canadian dollar was steady on Friday, but could slide after another catalogue of US economic data and the prospect of an interest rate cut next week.
Bond prices extended gains, fuelled by high anticipation that the Bank of Canada will cut interest rates on January 20.
At 8:25 am (1325 GMT), the currency was at C$1.2960 to the US dollar, or 77.16 US cents, compared with the two-week closing low of C$1.2959 to the US dollar, or 77.17 US cents, at Thursday's session end.
The Canadian dollar is slipping because of firmer expectations the Bank of Canada will cut interest rates next on Tuesday.
"Dollar/Canada is being supported by the rate cut," said David Ebata, managing analyst at Thomson FIR in Boston.
"My feeling is that if we break C$1.30, we're going back to C$1.32 very quickly."
Canada's overnight rate is 2.75 percent, while the US fed funds rate is 1 percent.