Canadian dollar little changed as jobs data looms

Thu Jul 10, 2008 9:23am EDT
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By Frank Pingue

TORONTO (Reuters) - The Canadian dollar was little changed against the U.S. dollar on Thursday as traders bided their time ahead of the key domestic jobs report due on Friday ahead of next week's Bank of Canada rate announcement.

Domestic bond prices, with no Canadian data to influence a move, followed the bigger U.S. Treasury market lower across the curve after data south of the border showed jobless claims fell in the latest week.

At 9:15 a.m., the Canadian unit was at C$1.0109 to the U.S. dollar, or 98.92 U.S. cents, up from C$1.0111 to the U.S. dollar, or 98.90 U.S. cents, at Wednesday's close.

The Canadian dollar stuck in a tight range throughout the overnight session as traders avoided huge commitments until they get to see how the Canadian job market fared in June.

The June employment figures, the last piece of data the Bank of Canada will consider ahead of its next scheduled rate decision on July 15, are expected to show the economy created 10,000 jobs in June with an unemployment rate of 6.1 percent.

"Basically we're waiting for the employment data tomorrow," said David Bradley, director of foreign exchange trading at Scotia Capital. "The Canadian dollar for the last week or two has been ... trading on its own and hasn't really been paying to much attention to the fundamentals."

In recent weeks there have been sessions where the Canadian dollar has closed near its session high even as the Toronto Stock Exchange's main index dropped sharply. Even oil prices, which rose to a record high and then slammed lower, have only played a minor role in the currency's direction.

Next week's Bank of Canada rate announcement is not likely going to knock the Canadian dollar form its recent range given the light summer trading volumes, analysts say.   Continued...