TORONTO (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Thursday, paring some of the previous day's gains as investors awaited a speech by Bank of Canada Governor Stephen Poloz that could help offer clues on the outlook for interest rates.
Poloz, who will step down when his seven-year mandate expires in June, is due to speak about "seeing the big picture." The central bank will release his prepared remarks at 12:40 p.m. (1740 GMT).
Last week, the bank left its benchmark interest rate on hold at 1.75% as it pointed to early signs the global economy was stabilizing and sources of resilience in the Canadian economy. But domestic data has since showed that Canada's economy shed more than 70,000 jobs in November.
At 9:16 a.m. (1416 GMT), the Canadian dollar was trading 0.1% lower at 1.3185 to the greenback, or 75.84 U.S. cents. The currency traded in a range of 1.3163 to 1.3189.
On Wednesday, the loonie rallied after the U.S. Federal Reserve held interest rates steady and struck an optimistic tone on the economic outlook. Canada is a major exporter of commodities, including oil, so its economy could benefit from an improved outlook for global growth.
U.S. crude (CLc1) prices were up 0.2% at $58.9 a barrel, boosted by the Fed's message and a forecast by OPEC of a supply deficit next year.
Canada's two main opposition parties on Wednesday suggested they could move to delay ratification of a new trade pact with the United States and Mexico, accusing the Liberal government of botching revisions to the treaty.
Canada sends about 75% of its exports to the United States.
Canadian government bond prices were slightly higher across the yield curve in sympathy with U.S. Treasuries. The two-year (CA2YT=RR) rose 2 Canadian cents to yield 1.652% and the 10-year (CA10YT=RR) was up 9 Canadian cents to yield 1.572%.