Canada’s dollar touched a one-month high versus its U.S. counterpart before data tomorrow that economists forecast will show the nation gained 10,000 jobs in November, up from a 1,800 gain the prior month.
The Canadian currency fluctuated versus the greenback as a measure of expected price changes in the currency pair’s exchange rate fell to a 12-year low. The two dollars traded in the tightest five-day range in 16 years last week as U.S. lawmakers engaged in budget showdown that may push Canada’s biggest trade partner into recession.
“We seem to be stuck in a range as Canadian dollar volatility has basically been sapped out,” Blake Jespersen, managing director of foreign exchange in Toronto at Bank of Montreal (BMO), said in a phone interview. “Employment numbers always cause a little bit of volatility, so look for those numbers to cause a bit of movement. Event risk is really centered around the fiscal cliff.”