TORONTO (Reuters) - Canada’s dollar ended little changed against its U.S. counterpart on Wednesday with the currency stuck in a tight trading range as investors awaited resolution on a second Greek bailout and central bank meetings on Thursday.
“The biggest risk is the central bank risk that we get tomorrow,” said Camilla Sutton, chief currency strategist at Scotia Capital. “People are focusing on Greece, but I think there are a lot of other currents ... and we have a lot of traders just holding pat as we wait out that risk.”
The European Central Bank and the Bank of England both hold policy meetings on Thursday, with the UK central bank expected to add an extra 50 billion pounds ($79.4 billion) of stimulus via bond purchases.
Global markets also awaited the outcome of the latest meeting of Greek political leaders, with stocks edging higher and the euro staying near a two-month high, providing little direction for secondary currencies including the Canadian dollar. <MKTS/GLOB>
Greek leaders are meeting to agree a deal on painful austerity steps needed to secure a 130 billion euro ($172 billion) rescue from the IMF and European Union and avoid a messy debt default.
The lack of resolution left the Canadian dollar little changed on the day, ending the North American session at C$0.9961 to the U.S. dollar, or $1.0039, a hair beneath its finish on Tuesday at C$0.9948 to the U.S. dollar, or $1.0052.
“For CAD, we’re really still stuck in an old range, we have to get through the C$0.9892 levels for us to really break the extended range we’ve had here, and we haven’t done so yet,” Sutton said.
“A lot of the currencies haven’t moved very much. The euro is closing where it was yesterday ... same with equities, same with oil prices. We don’t have a ton of movement overall.”
The currency showed little reaction to news that Canadian housing starts declined in January from December, but construction was still stronger than expected.
Canadian bond prices were mostly lower, softening in tandem with U.S. Treasuries. <US/>
The two-year bond fell 5.5 Canadian cents to yield 1.072 percent. The 10-year bond slipped 17 Canadian cents to yield 2.055 percent.
Additional reporting By Jennifer Kwan; Editing by Jeffrey Hodgson