The Canadian dollar slipped against a generally sturdier US currency as investors opted to overlook minor data releases in favour of readying for next week's central bank events. Bonds were little changed with a negative bias.
At 10:15 am (1515 GMT), the Canadian dollar was at C$1.2046 to the US dollar, or 83.02 US cents, down from Thursday's close at C$1.2018, or 83.21 US cents.
The US dollar, which some analysts say has been oversold in the past few weeks, also pushed higher against the euro.
The day's data calendar is relatively light and next on Tuesday's US Federal Reserve meeting looms, with the focus on the US central bank's statement.
A 25-basis-point rate hike by the Fed has been completely factored in, but the question remains whether the bank will signal how fast rates will go up in coming months.
"The outliner is whether they remove the word 'measured'.
I think it will be buy-the-rumour, sell-the-fact with respect to the dollar and the Fed," said Jack Spitz, director of foreign exchange at National Bank of Canada. "The US dollar itself is rising against the euro.
To some degree that has put a bid tone to dollar/Canada." There is conflicted sentiment about the US as optimism about economic growth battles with pessimism over the current account deficit. That combination has lead to some choppy trading activity for the US dollar, Spitz said.
And it has hemmed the Canadian dollar into a range between C$1.20-C$1.21 to the US dollar for nearly two weeks.
The domestic currency has made a few attempts at breaking out before running into selling pressure and settling back.
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