* C$ at C$1.0055 vs US$, or 99.45 U.S. cents
* Investors clearing positions
* C$ expected to trade between C$1.0040 and C$1.0090
* Bonds weaker across curve
By Solarina Ho
TORONTO, Feb 12 The Canadian dollar was weaker
against its U.S. counterpart on Tuesday and traded near two-week
lows, pressured in part by recent, unexpectedly weak Canadian
The currency has struggled in the wake of Friday's reports
that showed surprise job losses in January and
lower-than-expected housing starts.
"There's still a bit of follow-through from the weak
employment data we saw on Friday," said David Bradley, director
of foreign exchange trading Scotiabank, adding that the currency
was expected to remain weak in the short term.
"I don't think there's a lot of fresh long USD/CAD positions
being put in the market right now. A lot of it is stale
positions getting cleared out...I think the market for the time
being is looking to buy dollars on any dips lower."
The currency was trading at C$1.0055 versus the
U.S. dollar, or 99.45 U.S. cents, softer than Monday's North
American session close at C$1.0043, or 99.57 U.S. cents.
Bradley expected the currency to trade between C$1.0040 and
C$1.0090 for the day.
Investors are also eyeing comments by Bank of Canada
governor Mark Carney who will be addressing the Canadian
parliamentary committee on Tuesday.
With the exception of the sterling and the
Japanese yen, where it was trading at more than 2-1/2
year highs, Canada's dollar was mostly weaker against other
"It seems as though there's some cross interest going
through the market to sell Canada," said Bradley, adding that
the Canadian dollar was not seeing any spillover from the
"currency wars" dominating foreign exchange markets.
The Group of Seven industrialized nations issued a statement
urging countries to refrain from competitive devaluations,
reacting to weeks of concern that the monetary easing policy of
Japan's new government, which has also weakened its currency,
could trigger far-reaching currency wars.
Canadian government bond prices were lower across the curve,
with the price of a two-year bond down 1.5 Canadian
cents to yield 1.124 percent and the benchmark 10-year bond
down 10 Canadian cents, yielding 1.986 percent.