The Canadian dollar drifted higher against the US dollar in a modest range on Friday, while bonds were flat in the absence of a catalyst to provide direction.
At 9:10 am, the Canadian currency was at C$1.1681 to the US dollar, or 85.61 US cents, up from C$1.1718 to the US dollar, or 85.34 US cents, at Thursday's close, which was the highest finish in nearly a month.
"On a trade-weighted basis, the US dollar has gained about a half a percent the last couple of days," said Mark Chandler, senior markets analyst at Scotia Capital.
"Canada has been roughly stable over that time, particularly in light of the fact that we're likely in election mode next week." Canada's minority Liberal government could be set to fall next week, as the vote on an opposition motion of non-confidence was set for 6:30 pm EST on Monday. The motion by the Conservatives was debated on Thursday and is expected to be passed on Monday's vote, triggering a general election, probably in January.
Next week's activity should pick up when US players are back in full force after the Thanksgiving holiday and a rush of data floods traders' screens.
Domestic bond prices were unchanged on Friday, lacking any news to influence market direction. Even with the bigger United States Treasury market open for half a session, it is unlikely to heavily spur much activity this side of the border.
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