* C$ little changed at C$0.9854 vs US$ or $1.0149
* Trichet, Bernanke overshadow U.S., Canada data
* Bond prices rise across curve
(Updates, adds comments, details)
By Andrea Hopkins
TORONTO, Sept 8 The Canadian dollar was little
changed in early trade on Thursday as markets focused on
statements by key central bankers, overshadowing U.S. and
Canadian economic data.
The euro slid to a two-month low against the U.S. dollar
after the European Central Bank kept interest rates on hold and
ECB boss Jean-Claude Trichet said growth risks in the euro zone
economy have shifted to the downside. [MKTS/GLOB]
The U.S. dollar could also come under pressure later in the
day as U.S. Federal Reserve Governor Ben Bernanke speaks at
1:30 p.m. (1730 GMT), when he is expected to acknowledge
disappointing news on economic recovery but will likely avoid
announcing any further moves on monetary policy.
The focus on the powerful central bankers overshadowed
economic data in Canada and the United States, traders said.
"There are far bigger risks in the system, with Trichet
speaking at the same time as the data release as well as
Bernanke coming up this afternoon. That has clouded any impact
from the data," said Camilla Sutton, chief currency strategist
at Scotia capital.
"All in all, the Canadian dollar is likely to hug middle
ground pretty closely."
At 9:26 a.m. (1326 GMT), the Canadian currency CAD=D4
wssd at C$0.9854 to the U.S. dollar, or $1.0149, essentially
unchanged from Wednesday's North American close. It had
strengthened briefly to C$0.9840 to the U.S. dollar, or
$1.0162, immediately after U.S. and Canadian economic data was
U.S. jobless claims rose unexpectedly last week and
Canadian trade and housing data for July came in mostly
stronger than expected, according to reports released in
Washington and Ottawa.
Canadian bond prices rose across the yield curve as
investors shifted to safety.
The two-year bond CA2YT=RR was up 2.5 Canadian cents to
yield 0.900 percent, while the 10-year bond CA10YT=RR rose 27
Canadian cents to yield 2.240 percent.
(Editing by Peter Galloway)