* Canadian dollar at C$1.1007 or 90.85 U.S. cents
* Bond prices mostly lower across the maturity curve
By Leah Schnurr
TORONTO, April 22 The Canadian dollar was little
changed on Tuesday as traders found few compelling reasons to
drive the loonie in either direction, even as data showed
domestic wholesale trade rose more than expected in February.
Strength in recent Canadian economic data had helped the
loonie recover 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 as it hovers around the technically
important C$1.10 level.
Tuesday's data was similarly unable to give the Canadian
dollar a significant lift. Canadian wholesale trade rose 1.1
percent in February, surpassing expectations for 0.7 percent, as
sales rose in all subsectors.
"We have had this string of better-than-expected data, but
on the other side, we also have a central bank who is quite
neutral in its tone, and we also have the U.S. outperforming
Canada," said Camilla Sutton, chief currency strategist at
Scotiabank in Toronto.
"The end result is that I think Canada is stuck on either
side of C$1.10, waiting for a catalyst that would have the
central bank shift its tone, have the growth outlook improve
even more, or have a shift in global growth."
The Bank of Canada said last week that an interest rate cut
was still a possibility, even as the central bank forecast
inflation will pick up speed this year.
The Canadian dollar was trading at C$1.1007 to the
greenback, or 90.85 U.S. cents, slightly stronger than Monday's
close of C$1.1015, or 90.79 U.S. cents.
Canada's Finance Minister, Joe Oliver, will be speaking in
Halifax later on Tuesday and could garner some attention from
traders. Oliver replaced former Finance Minister Jim Flaherty
Canadian government bond prices were mostly lower across the
maturity curve, though the two-year was unchanged to
yield 1.073 percent. The benchmark 10-year was off
10 Canadian cents to yield 2.462 percent.
(Editing by W Simon)