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Canadian $

finish firmer

TORONTO: The Canadian dollar closed modestly firmer in thin volume on Wednesday, with little news to react to until the German Bundesbank announces whether it will cut short-term interest rates on Thursday, analysts said.

"It's been much of a non-event," said Stephen Wateridge, CIBC's director of corporate foreign exchange. "The market is awaiting for an announcement from the Bundesbank tomorrow.

Canada's dollar ended at C$1.3563 (US$0.7373), stronger than Tuesday's close of C$1.3582 (US$0.7363).

"If Germany cuts rates tomorrow as expected, the Canadian dollar will break out of the range," said an analyst.

Julius Grygue, vice-president of Bendix Foreign Exchange, is betting Germany will cut rates although others disagree. Either way, the unit will move out of its current flow, he said.

Investors will be eyeing the U.S. dollar's reaction as well tomorrow, Wateridge said. Until then, "really, the market is somewhat on hold," he added. Overnight trading is seen quiet, with the unit floating around C$1.3555 to C$1.3580.

On the crosses, Canada's dollar dipped to 1.1103 marks on Wednesday's close from 1.1114 marks on Tuesday, but rose to 79.74 yen from 79.63 yen.-Reuter