CANADA FX -Canada dollar little changed in quiet holiday trade

Mon Nov 11, 2013 4:24pm EST

* C$ at C$1.0475 vs U.S. dollar, or $0.9547 U.S. cents
    * Quiet trading on partial holiday


    By Andrea Hopkins
    TORONTO, Nov 11 (Reuters) - The Canadian dollar ended little
changed against its U.S. counterpart in quiet holiday trade on
Monday as the U.S. dollar rally paused while investors digested
U.S. monetary policy options.
    Signs of a solid U.S. recovery boosted world equity markets
even as last week's strong U.S. jobs data brought forward some
expectations for when the Fed could start tapering its stimulus.
 
    Wall Street and other major world stock indexes gained some
ground in subdued trade. U.S. and Canadian bond markets and
banks were closed for Canada's Remembrance Day and the U.S.
Veterans Day holiday.
    The greenback's rally against the euro paused after two days
of strong gains amid continued discussion over when the Fed
might scale back its stimulus, while gold slid to a 3-1/2 week
low on low inflation.
    "I think the market, when you are looking at yields, is
still trying to buy U.S. dollars on dips. The U.S. had great
data on Friday, ours wasn't great but it wasn't poor," said
Darcy Browne, a managing director of foreign exchange sales at
CIBC World Markets.
    "Nothing was really happening today ... so we just have to
wait and see what happens tomorrow when everybody walks back in
and readjusts to the whole scenario."
    The Canadian dollar ended the North American
session at C$1.0475 versus the greenback, or 95.47 U.S. cents,
little changed from Friday's close at C$1.0478, or 95.44 U.S.
cents. 
    Browne said the currency would likely stay close to its
recent range until the market figures out which way the Fed is
heading and when.
    "There's lots of buying up near C$1.0550 and we could get a
dip somewhere down to C$1.0450-C$1.0460 for another run at the
top side," he said.
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