CANADA FX DEBT-C$ holds steady in narrow range; BOC successor in focus

Mon Apr 22, 2013 9:16am EDT

* C$ unchanged at C$1.0263 vs US$, or 97.44 U.S. cents
    * New Bank of Canada governor announcement anticipated
    * Canadian retail sales on Tues and U.S. Q1 GDP key data
this week

    By Solarina Ho
    TORONTO, April 22 (Reuters) - The Canadian dollar was little
changed versus the U.S. dollar on Monday, following a dismal
prior week, with a dearth of economic data and news keeping the
currency on hold.
    Equity markets were given a boost after the Group of 20
countries over the weekend stopped short of criticizing the
radical easing steps which the Bank of Japan says are aimed at
battling deflation, with any currency weakness simply a
byproduct.  
    The commodities-linked Canadian dollar was trading in a
tight 21-point range between C$1.0248 and C$1.0269 after
weakening off 1.2 percent last week in reaction to plunging
commodity prices.
    Outgoing Bank of Canada Governor Mark Carney also slashed
growth forecasts last Wednesday, which added to some of the
currency's weakness.
    "Last week was a pretty big week for us in terms of domestic
events with the (Bank of Canada's Monetary Policy Report) and so
on," said Mark Chandler, head of Canadian fixed income and
currency strategy at Royal Bank of Canada.
    "The G20 meeting, if anything, gives the green light for the
Bank of Japan to continue to have accommodative policy. That's
underpinned a bit of a risk-on tone and generally helped riskier
commodity-based currencies such as Canada, but it's very, very,
very small."
    At 9:05 a.m. (1305 GMT) Canada's dollar was trading
at C$1.0263 against the U.S. dollar or 97.44 U.S. cents,
unchanged from Friday's close.
    The Canadian dollar's performance was mixed against other
major currencies.
    Looking ahead, retail sales on Tuesday will be the main
economic data for Canada this week while first-quarter GDP
figures on Friday will be the key U.S. data.  
    "If there's anything that's waiting out there for the
Canadian dollar it's probably the announcement of a new Bank of
Canada governor," said Chandler.
    Current deputy Tiff Macklem is unanimously expected to be
the successor to Carney, according to a Reuters poll.
 
    Should there be a surprise appointment, there is a risk of
the Canadian dollar weakening, said Chandler.
    Canadian government bond prices were mixed, with the
two-year bond unchanged with a yield of 0.940
percent, while the benchmark 10-year bond shed 2
Canadian cents to yield 1.713 percent.
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