Canadian Dollar Rallies;
TORONTO--The Canadian dollar continued to strengthen Thursday on the back of broad-based U.S. dollar weakness, after a Wall Street Journal report suggested the Federal Reserve will keep its $85 billion-a-month bond-buying program in place at its policy meeting next week.</br></br>The U.S. dollar was at C$1.0261 Thursday, from C$1.0314 late Wednesday, according to data provider CQG.</br></br>The greenback briefly touched a new monthly low after a report in the Wall Street Journal said the Fed is likely to keep its quantitative easing program steady when it meets next week, but officials may refine or revise its "forward guidance" in its policy statement.</br></br>"Everything is about the Fed right now," said Greg Moore, currency strategist at TD Securities in Toronto. "Even if you see weak PMI in China or a strong GDP report in the U.K., the reaction is really fleeting," he said.</br></br>There were no major Canadian data releases Thursday, leaving the loonie to move broadly on external headlines.