TORONTO (Reuters) - The Canadian dollar was steady against the greenback in quiet trading on Tuesday as investors held off making bets ahead of Wednesday’s release of minutes from the latest U.S. Federal Reserve policy meeting and with no major domestic economic data on tap until week’s end.
A key U.S. Senate vote on Tuesday on approving the Keystone XL oil pipeline project could move the commodities-linked Canadian dollar, but any impact was not expected to be lasting. The TransCanada Corp pipeline, if approved, would transport more than 800,000 barrels per day of oil from the Alberta oil sands to the U.S. Gulf Coast.
At 9:15 a.m. EST (1415 GMT), the Canadian dollar CAD=D4 was at C$1.1294 to the U.S. dollar, or 88.54 U.S. cents, steady with Monday’s finish of C$1.1296, or 88.53 U.S. cents.
“It’s been quiet so far this week. Volatility’s been lower, volume’s been lower. The Canadian dollar’s taking the backseat a little bit,” said David Bradley, director of foreign exchange trading at Scotiabank.
“There’s some cross activity going through as well ... which has been keeping us trapped in a bit of a range also.”
Canadian government bond prices rose across the maturity curve, with the two-year CA2YT=RR up half a Canadian cent to yield 1.003 percent, and the benchmark 10-year CA10YT=RR climbing 15 Canadian cents to yield 2.008 percent.
Reporting by Solarina Ho; Editing by Peter Galloway