CANADA FX DEBT-C$ flat as investors look to inflation data

Mon Aug 18, 2014 4:18pm EDT

* Canadian dollar at C$1.0886 or 91.86 U.S. cents
    * Bond prices lower across the maturity curve

 (Adds details, quotes, updates prices)
    By Leah Schnurr
    TORONTO, Aug 18 (Reuters) - The Canadian dollar was little
changed against the greenback on Monday despite stronger risk
appetite in financial markets as investors shied away from
taking aggressive bets ahead of inflation data due on both sides
of the border this week.
    The loonie had firmed in early trading but lost steam after
data showed foreign investors sold a net C$1.07 billion ($980
million) worth of Canadian securities in June. 
    Still, the currency found some support as markets were less
worried about tensions in Ukraine following an escalation on
Friday. Ukraine had said its artillery had hit a Russian armored
column, while Russia denied its forces had crossed into Ukraine.
 
    The loonie was expected to trade in a range in the near term
with Canadian inflation and retail sales data due on Friday, and
the annual gathering of central bankers and economists in
Jackson Hole getting under way later in the week. The United
States will release its inflation report on Tuesday.
    "People still feel quite comfortable with where U.S.
dollar-Canadian dollar is trading at right now, oscillating
around C$1.09 for the most part," said Rahim Madhavji, president
at KnightsbridgeFX.com in Toronto.
    "It seems like there's more of a wait and see approach, it's
really consolidating around this level."
    The Canadian dollar ended the North American
session at C$1.0886 to the greenback, or 91.86 U.S. cents, a tad
stronger than Friday's close of C$1.0889, or 91.84 U.S. cents.
    With investors looking ahead to the rest of the week, the
loonie saw minimal positive follow-through from Friday's
restated Canadian jobs numbers that showed the economy added far
more jobs in July than had been initially erroneously reported.
    "Despite the positive jobs data report, no-one really wants
to put a lot of momentum behind the Canadian dollar," said
Madhavji.
    Canadian government bond prices were lower across the
maturity curve, with the two-year off 3-1/2 Canadian
cents to yield 1.070 percent and the benchmark 10-year
 down 41 Canadian cents to yield 2.065 percent.

 (Editing by James Dalgleish)
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