* C$ ends at C$1.0015 vs US$, or 99.85 U.S. cents
* C$ touches more than 13-month low vs euro
* Bond prices little changed across the curve
* U.S. Q4 GDP misses expectations
* Fed keeps stimulus in place
By Claire Sibonney
TORONTO, Jan 30 The Canadian dollar crept up to
a near one-week high against its U.S. counterpart on Wednesday
after the U.S. Federal Reserve's pledge to stick to its
ultra-accommodative policy stance offset data that showed a
surprise contraction in U.S. fourth-quarter growth.
At the end of a two-day policy meeting, the Fed left in
place its monthly $85 billion bond-buying stimulus plan, saying
economic growth had stalled but indicating the pullback was
"Today started off with GDP being off what was expected for
Q4, and then ... nothing different out of the last two days in
(Fed) meetings, so I think people are more just sitting on the
sidelines right now, seeing more from a technical standpoint if
we're going to hold certain levels," said Michael Ward,
USForex's CEO of North America and Europe, based in San
The Canadian currency has recently settled into a
range between C$1.01 and equal value with the U.S. dollar after
weakening sharply last week on a dovish shift in the Bank of
The Canadian dollar ended the North American session at
C$1.0015 versus the U.S. dollar, or 99.85 U.S. cents, a bit
firmer than Tuesday's close at C$1.0024, or 99.76 U.S. cents. It
hit an intraday high of C$1.0009, or 99.91 U.S. cents, its
strongest level since Jan. 24.
On other currency crosses, the Canadian dollar hit a more
than 13-month low against the euro as traders
contrasted fresh evidence of a soft a North American outlook
with the improving economic view of the euro zone.
Describing the U.S. job market as continuing its modest pace
of improvement, the Fed repeated a vow to keep purchasing
securities until the outlook for employment "improves
U.S. gross domestic product fell at a 0.1 percent annual
rate in the fourth quarter after growing at a 3.1 percent clip
in the previous three months, though analysts said there was no
reason for panic given that consumer spending and business
investment picked up.
"The net effect (of the U.S. GDP data) has been remarkably
limited actually on currencies generally," said Adam Cole,
global head of FX strategy at RBC Capital Markets in London.
On Thursday, traders will be paying close attention to
Canadian November GDP figures to provide further evidence of a
lackluster performance for the end of last year.
Canadian bond prices were little changed across the curve.
The two-year bond was off 1 Canadian cent to yield
1.171 percent, while the benchmark 10-year bond was
flat to yield 1.998 percent.