CANADA FX DEBT-C$ gets a respite after recent sell-off
* Canadian dollar at C$1.0880 or 91.91 U.S. cents * Bond prices mostly higher across the maturity curve By Leah Schnurr TORONTO, Jan 13 (Reuters) - The Canadian dollar firmed slightly against the greenback on Monday with investors consolidating following last week's rout as a lack of domestic economic news gave the loonie a reprieve. The Canadian currency lost ground every day last week and touched a more than four-year low on Friday after data showed the country's economy unexpectedly shed jobs in December. The report emphasized expectations the Bank of Canada will maintain its recent dovish stance, one of the factors that is seen keeping pressure on the loonie in 2014. Still, the swiftness of the currency's sell-off may prompt markets to take a pause. The Canadian dollar was also getting some benefit from a weaker greenback as disappointing jobs growth in the United States prompted investors to reassess how quickly the Federal Reserve could wind down its stimulus program. "It's pretty much dire straits for the loonie, everyone has definitely been piling on the short Canadian dollar trade," said Scott Smith, senior market analyst at Cambridge Mercantile Group in Calgary. "I think it's very likely this week we'll see a bit of consolidation in the loonie." The Canadian dollar was at C$1.0880 to the greenback, or 91.91 U.S. cents, stronger than Friday's close of C$1.0901, or 91.73 U.S. cents. The Canadian economic calendar is light this week, while south of the border, investors will parse reports including retail sales and the consumer price index. U.S. data that comes in on the soft side could benefit the loonie, said Smith. Smith sees the U.S. dollar-Canadian dollar trading in the C$1.0950 to C$1.0960 area on the topside, while a pullback could take the currency pair to the C$1.0810 to C$1.0750 range. Attention will also be turning to the Bank of Canada's interest rate decision and policy statement that will be released next week. "I think that with the data we've seen over the past two weeks, the Bank of Canada could definitely get a little more dovish" in the statement's language, said Smith. Canadian government bond prices were mostly higher across the maturity curve, though the two-year was unchanged to yield 1.015 percent. The benchmark 10-year was up 15 Canadian cents to yield 2.539 percent.
- Tesla prevails in top Massachusetts court over direct sales
- U.S. to Assad: Beware of interfering with U.S. air power in Syria
- Odile batters Mexico's Baja resorts, knocks out power to most area
- Iran supreme leader spurns U.S. overture to fight Islamic State |
- Quake strikes northeast of Tokyo, no reports of serious damage