CANADA FX DEBT-C$ weakens; retail sales, policymakers in focus
* Canadian dollar at C$1.0471 vs U.S. dollar, or 95.50 U.S. cents * Bond prices lower across the maturity curve By Leah Schnurr TORONTO, Nov 19 (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Tuesday as investors positioned themselves ahead of retail sales data due this week from both the United States and Canada. With investors also awaiting commentary from central bank policymakers on both sides of the border, the loonie drifted away from the one-week high it hit on Monday. "Canada is lacking some momentum or a boost here, so it's come off those recent highs," said Don Mikolich, executive director of foreign exchange sales at CIBC World Markets in Toronto. Federal Reserve Chairman Ben Bernanke was due to speak later on Tuesday, while Bank of Canada Governor Stephen Poloz will be giving parliamentary testimony on Wednesday, along with Senior Deputy Governor Tiff Macklem. On the economic front, U.S. retail sales data for October are also due on Wednesday and are expected to show a 0.1 percent rise, according to economists polled by Reuters. Canadian retail sales for September, expected on Friday, is forecast to show a 0.3 percent rise. "What you're seeing is a little bit of repositioning ... with everyone looking at growth, retail sales would be the interesting (economic point), but even then, it's going to be U.S. retail sales that will grab the headline," said Brad Schruder, director of foreign exchange at BMO Capital Markets. Inflation data on both sides of the border are also released this week, but Schruder said inflation, which has seen little movement, has "almost become a tertiary figure." The Canadian dollar ended the North American session at C$1.0471 versus the greenback, or 95.50 U.S. cents, weaker than Monday's close at C$1.0432, or 95.86 U.S. cents. The loonie should see support around C$1.0410, but unless there are some positive catalysts from both Canada and the United States, the currency is likely where it should be for now, said Mikolich. Canadian bond yields were lower across the maturity curve, with the two-year bond down 4 Canadian cents to yield 1.125 percent, while the benchmark 10-year bond fell 33 Canadian cents to yield 2.568 percent.
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