CANADA FX DEBT-C$ little changed ahead of Nexen deal closure
* C$ at $1.0029 vs US$, or 99.71 U.S. cents * Nexen deal closes Feb 25, could boost the C$ * Currency talk at the G20 meeting in Moscow this weekend in focus By Solarina Ho TORONTO, Feb 13 (Reuters) - The Canadian dollar was steady against the U.S. dollar on Wednesday following Tuesday's more dramatic moves, with the currency expected to be mostly sidelined until the $15.1 billion takeover of Nexen Inc by CNOOC Ltd closes. The Canadian dollar got a slight bo88ost on Tuesday after U.S. regulators approved China's CNOOC takeover of the Canadian oil and gas company. The deal is expected to close the week of Feb 25. "People took [the Nexen approval] to mean that there should be some Canada-positive flow. Although it's very unclear as to what that flow's going to be," said John Curran, senior vice president at CanadianForex. If the Nexen deal does support the currency, Curran said it could be an excellent opportunity to sell the Canadian dollar for the medium term, given Canada's recent economic data and the Bank of Canada's more dovish stance. "I think we are going to be sort of sidelined and remain within this range until the 25th," he said. At 9:33 a.m. (1433 GMT), the currency was trading at C$1.0029 versus the U.S. dollar, or 99.71 U.S. cents, little changed from Tuesday's North American finish at C$1.0027, or 99.73 U.S. cents. The currency briefly strengthened to C$1.0022, or 99.78 U.S. cents after the greenback pared gains following U.S. data that showed retail sales in January barely rose. Curran expected the currency to trade between equal value and C$1.0060 on Wednesday, where it was weaker against all other major currencies, except the sterling. "The Canadian dollar isn't the major story out there when you look at all the other currencies and what they are doing. So we may be dragged around a little bit by the nose due to cross-flows, which will all filter through to us," said Curran. Policymakers and investors worry that the new Japanese government's push on its central bank for a looser monetary policy, which has weakened the yen, could trigger far-reaching currency wars. Exchange rates and the Japanese yen will likely be in the spotlight this weekend when the Group of 20 wealthy and emerging nations meet in Moscow. Canadian government bonds fell across the curve, with the price of the two-year bond down 4 Canadian cents to yield 1.142 percent and the benchmark 10-year bond down 33 Canadian cents, yielding 2.035 percent.
- Malaysia air probe finds scant evidence of attack: sources |
- Search widened as Malaysia air probe finds scant evidence of attack |
- Confrontation in Ukraine as diplomacy stalls |
- Exclusive: Chinese raw materials also found on U.S. B-1 bomber, F-16 jets
- Freescale loss in Malaysia tragedy leads to travel policy questions