CANADA FX DEBT-C$ flat as investors search for catalysts

Mon Apr 21, 2014 4:32pm EDT

* Canadian dollar at C$1.1015 or 90.79 U.S. cents
    * Bond prices mixed across the maturity curve

 (Adds details, quote, updates prices)
    By Leah Schnurr
    TORONTO, April 21 (Reuters) - The Canadian dollar was little
changed against the greenback on Monday as investors found few
catalysts to push the loonie in either direction, while trading
was muted as some market participants were still away for Easter
holidays.
    Some caution earlier in the day had given the currency a
modestly negative tone as tension in Ukraine made investors
risk-averse. 
    An agreement reached last week to avert wider conflict in
Ukraine appeared to be faltering, with pro-Moscow separatist
gunmen showing no sign of surrendering government buildings they
have seized. 
    Recent strength in Canadian economic data had helped the
loonie bounce back from the 4-1/2-year low it hit in March, but
that rally has run out of steam in the last couple weeks,
leaving the currency moving sideways.
    The Canadian dollar is likely to remain in a trading range
in the short term, said Rahim Madhavji, president at
KnightsbridgeFX.com in Toronto.
    "If you look at the picture over the last several weeks, the
loonie is quite content at the C$1.10 range and it's been pretty
much range-bound around that level," he said. "I don't see that
changing any time soon."
    The C$1.10 level is seen as a key technical level.
    The Canadian dollar ended the North American
session at C$1.1015 to the greenback, or 90.79 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 mixed across the
maturity curve, with the two-year up 0.8 Canadian
cents to yield 1.070 percent, while the benchmark 10-year
 was down 5 Canadian cents to yield 2.450 percent.

 (Editing by Peter Galloway)
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