CANADA FX DEBT-C$ steady with focus on upcoming data

Wed Apr 2, 2014 10:32am EDT

* Canadian dollar at C$1.1035 or 90.62 U.S. cents
    * Bond prices lower across the maturity curve

    By Leah Schnurr
    TORONTO, April 2 (Reuters) - The Canadian dollar was little
changed against the greenback on Wednesday as the currency
consolidated after recent gains, while investors looked ahead to
some key domestic economic reports later in the week.
    Since dropping to a 4-1/2 year low nearly two weeks ago, the
Canadian dollar has managed to recover some losses and traders
expect the currency could move sideways as it absorbs those
gains. Better than expected Canadian producer prices data gave
the loonie a lift on Tuesday, and the market was turning its
focus to trade balance and labor market reports due on Thursday
and Friday, respectively.
    "Right now we're seeing a market for U.S. dollar-Canadian
dollar that's very range-bound, traders not wanting to take a
large position either way until we see some more concrete
domestic data later in the week," said Scott Smith, senior
market analyst at Cambridge Mercantile Group in Calgary.
    The Canadian dollar was at C$1.1035 to the
greenback, or 90.62 U.S. cents, slightly weaker than Tuesday's
close of C$1.1032, or 90.65 U.S. cents.
    The currency earlier firmed to C$1.1003 before giving up
those gains. Analysts expect the C$1.10 level will represent
significant support for the U.S. dollar-Canadian dollar pairing
that could prevent the loonie from pushing higher in the short
term.
    On the topside, the pair should see resistance around the
C$1.1050 to C$1.1060 area, Smith said.
    Smith said the loonie could break from that range if there
is a surprise in Thursday's trade balance numbers or if
something unexpected comes out of the European Central Bank's
policy meeting, which is also on Thursday. 
    Canadian government bond prices were lower across the
maturity curve, with the two-year off 3 Canadian
cents to yield 1.092 percent and the benchmark 10-year
 down 38 Canadian cents to yield 2.539 percent.

 (Editing by Peter Galloway)
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California state worker Albert Jagow (L) goes over his retirement options with Calpers Retirement Program Specialist JeanAnn Kirkpatrick at the Calpers regional office in Sacramento, California October 21, 2009. Calpers, the largest U.S. public pension fund, manages retirement benefits for more than 1.6 million people, with assets comparable in value to the entire GDP of Israel. The Calpers investment portfolio had a historic drop in value, going from a peak of $250 billion in the fall of 2007 to $167 billion in March 2009, a loss of about a third during that period. It is now around $200 billion. REUTERS/Max Whittaker   (UNITED STATES) - RTXPWOZ

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