CANADA FX DEBT-C$ weakens modestly as Ukraine crisis spurs caution

Mon Apr 21, 2014 9:50am EDT

* Canadian dollar at C$1.1028 or 90.68 U.S. cents
    * Bond prices higher across the maturity curve

    By Leah Schnurr
    TORONTO, April 21 (Reuters) - The Canadian dollar weakened
modestly against the greenback on Monday as tensions in Ukraine
kept investors cautious, while trading was expected to be muted
as some market participants were still away for Easter holidays.
    An agreement reached last week to avert wider conflict in
Ukraine appeared to be faltering as pro-Moscow separatist gunmen
showing no sign of surrendering government buildings they have
seized. 
    Markets have seen risk aversion ebb and flow in recent
months as investors have focused on the Ukraine crisis.
    "As we see time and again, there's a bit of that flight to
safety," said Don Mikolich, executive director of foreign
exchange sales at CIBC World Markets in Toronto.
    "We have been sideways through the morning, so I think
probably trading in a fairly narrow range until we get some
interesting development or some of the data" later in the week,
he said.
    The Canadian dollar was at C$1.1028 to the
greenback, or 90.68 U.S. cents, weaker than Thursday's close of
C$1.1013, or 90.80 U.S. cents. Many financial markets were
closed on Friday for the Good Friday holiday.
    Investors will get a look at some domestic economic data
later in the week with February wholesale trade on Tuesday and
retail sales on Wednesday.
    Canadian government bond prices were higher across the
maturity curve, with the two-year up 1.3 Canadian
cents to yield 1.067 percent, and the benchmark 10-year
 up 9 Canadian cents to yield 2.435 percent.

 (Editing by Peter Galloway)
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