CANADA FX DEBT-C$ holds steady as market waits for jobs data

Wed Apr 2, 2014 4:48pm EDT

* Canadian dollar at C$1.1035 or 90.62 U.S. cents
    * Market eyes trade, jobs data due later this week
    * Bond prices lower across the maturity curve

 (Adds strategist's comment, updates prices to close)
    By Alastair Sharp
    TORONTO, April 2 (Reuters) - The Canadian dollar ended
little changed versus the greenback on Wednesday as investors
focused on key economic reports due in Canada and the United
States later this week.
    With the loonie, as Canada's currency is colloquially known,
consolidating this week after recent gains, investors awaited
North American employment reports on Friday to provide a
catalyst for new market moves. 
    "Heading into Friday's dual job reports in Canada and the
U.S. there is some risk that Canada does outperform," said Greg
Moore, senior currency strategist at Royal Bank of Canada.
    He said high expectations for U.S. jobs growth and overdone
pessimism on Canada's could set the loonie up to strengthen to
the low C$1.09s or even into the high C$1.08s in coming weeks.
    "We could see a deeper retracement in dollar/Canada just on
the pricing out of that optimism on the U.S. and pessimism on
Canada," Moore said.
    The Canadian dollar ended Wednesday's session at
C$1.1035 to the greenback, or 90.62 U.S. cents, just slightly
lower than Tuesday's close of C$1.1032, or 90.65 U.S. cents.
    Since dropping to a 4-1/2 year low nearly two weeks ago, the
Canadian dollar has managed to recover some ground.
Better-than-expected Canadian producer prices data gave the
loonie a lift on Tuesday, and monthly Canadian trade figures are
due on Thursday.
    "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.
    Smith said it was unlikely the pair will break above the
C$1.1050 to C$1.1060 area unless 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 4 Canadian
cents to yield 1.097 percent, and the benchmark 10-year
 down 46 Canadian cents to yield 2.548 percent.

 (Additional reporting by Leah Schnurr; Editing by Peter
Galloway)
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