TORONTO (Reuters) - The Canadian dollar traded little changed against the greenback on Friday as investors held off big bets in the event of financial market turmoil as a result of Sunday’s Greek election.
Riskier assets rallied in the previous session after G20 officials told Reuters that major central banks stood ready to stabilize financial markets by providing liquidity if the election result causes any adverse fallout.
But investors were still cautious heading into the weekend.
“Obviously you’re going to see some position squaring beforehand,” said John Curran, senior vice president at CanadianForex.
Expectations of more monetary stimulus were also encouraged by a British plan to flood its economy with cash, and after economic data in the United States rekindled talk of further easing by the Federal Reserve which holds a policy meeting next week.
“While all the hoopla is about Greece, I think the more important event is going to be next week’s FOMC. People are gingerly adding risk … on the assumption the Fed will stimulate growth,” added Curran.
At 8:12 a.m. (1212 GMT), the Canadian dollar stood at C$1.0242 versus the U.S. dollar, or 97.64 U.S. cents, down slightly from Thursday’s North American session close at C$1.0238, or 97.68 U.S. cents.
Curran put near-term U.S. dollar support around C$1.0150 against Canada’s dollar.
Canadian bond prices jumped, tracking U.S. Treasuries higher as investors positioned ahead of this weekend’s Greek election.
Canada’s two-year bond was up 9 Canadian cents to yield 1.000 percent, while the benchmark 10-year bond climbed 37 Canadian cents, yielding 1.762 percent.
Reporting By Claire Sibonney, editing by Dave Zimmerman