The Canadian dollar was little changed versus the US dollar on Monday and was expected to remain in a tight range for the whole session, with US and UK markets closed for holidays. Domestic bond prices, with no domestic data to consider and with the US bond market closed for Memorial Day, fell across the curve and were expected to take their cue from the equity market.
The Canadian currency was at US $1.0116, valuing a US dollar at 98.85 Canadian cents, down from US $1.0119, valuing a US dollar at 98.82 Canadian cents, at Friday's close. The Canadian dollar is fresh off its third straight winning week against the US dollar but a lack of market participants in thin holiday trade is expected to keep it wedged in a tight range for the session.
The only key piece of domestic data this week is Friday's quarterly gross domestic product report, likely the only time this week when domestic data may impact the currency. "Ahead of that we're just following broad US dollar moves and obviously the oil market," said Matthew Strauss, senior currency strategist at RBC Capital Markets.
"But I doubt we'll see any significant movement on both those markets today, so for today we're looking at fairly flat dollar Canada trading." The Canadian dollar has been stuck in a range of US $1.0139, valuing a US dollar at 98.62 Canadian cents, and US $1.0099, valuing a US dollar at 99.01 Canadian cents, all day amid ultra-thin volumes.