Canada dollar stronger but gains seen limited

Tue Nov 6, 2012 8:14am EST
 

By Alastair Sharp

TORONTO (Reuters) - The Canadian dollar strengthened somewhat against its U.S. counterpart on Tuesday but was unlikely to make a major move before investors know who will be the next president of the United States.

Europe was also prominent on the list of concerns, as hundreds of thousands of Greeks began a two-day strike against wage and pension cuts which the indebted country's parliament is expected to vote into law on Wednesday.

"Markets are waiting for results from the U.S. election and waiting to see what happens in Greece with the austerity package," said David Bradley, a director of foreign exchange trading at Scotiabank.

At 8:09 a.m. (1309 GMT) the Canadian dollar was trading at C$0.9944 to the greenback, or $1.0056, compared with C$0.9967, or $1.0033, at Monday's North American close.

Bradley said traders would likely keep the currency trading between C$0.9925 and C$0.9975 through the session.

The two-year bond was off 1 Canadian cent to yield 1.079 percent, while the benchmark 10-year bond fell 5 Canadian cents to yield 1.768 percent.

(Editing by James Dalgleish)