The Canadian dollar rose against the greenback on Monday despite upbeat data from the United States, a sign experts say is positive sentiment toward the Canadian currency ahead of domestic jobs data this week.
Canadian bond prices fell as a report showing growth in the US services sector hit a record high in March gave US investors more reassurance that the economic recovery remains on track.
The Canadian dollar finished at C$1.3129 to the US dollar, or 76.16 US cents, up from C$1.3150, or 76.05 US cents, at Friday's session close.
The Institute for Supply Management's non-manufacturing index surged to 65.8 in March from 60.8 in February, cruising past forecasts for a rise to 61.5.
Analysts now say the Canadian dollar will be stuck in its same well-worn range as only one major Canadian indicator - the March jobs survey on Thursday - will be the key focus for this holiday-shortened week. Markets will close for Good Friday and trade resumes on Monday.
The jobs report is the only major data between now and the Bank of Canada's rate policy decision on April 13, which is expected to yield a 25 basis point cut, the third this year, bringing the overnight rate to 2 percent.
Many believe this could be the last rate cut of this cycle, although market observers hope to see more data before firming their positions on the June decision and beyond.
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