Sep 4, 2012 / 7:25 am
The Canadian dollar was up slightly Tuesday morning, supported by higher commodity prices.
The currency was 0.06 of a cent higher at 101.51 cents US.
But the loonie could be in for some volatility this week as Quebecers head to the polls and the Bank of Canada makes its next interest rate announcement Wednesday morning. Also, the employment report for August is being released on Friday.
Polls suggest the pro-independence Parti Quebecois will return to office after nine years in opposition but it's far from certain whether the PQ can form a majority government.
"The Quebec election poses a risk to (the Canadian dollar) given the potential for adverse reactions from investors, where higher yields on Quebec's provincial debt could result from fears of a referendum in the event of a majority win for the Parti Quebecois," said Scotia Capital currency strategist Eric Theoret.
The central bank is widely expected to announce it is keeping its key rate unchanged at one per cent amid generally slowing economic conditions globally. But traders will look for hints as to when the bank might hike rates.
And Statistics Canada was expected to announce Friday that the economy cranked out 11,000 jobs last month.
Commodity prices advances with the October crude contract on the New York Mercantile Exchange ahead 34 cents to US$96.81 a barrel.
Metal prices also advances with the December copper contract on the Nymex up three cents to US$3.48 a pound.
Gold bullion was up $9 to US$1,696.60 an ounce.
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