CANADA FX DEBT-C$ ekes out small gain ahead of data, Fed
* C$ at C$1.0056 versus US$, or 99.44 U.S. cents * Trading light ahead of major data, Fed policy meeting By Alastair Sharp TORONTO, Jan 29 (Reuters) - The Canadian dollar perked up slightly against its U.S. counterpart on Tuesday, although trade was subdued ahead of major North American economic data later in the week. The Canadian currency appears to have settled into a fresh range between C$1.01 and equal value to the U.S. dollar after weakening sharply last week on a shift in Canada's monetary policy outlook. It has disconnected from the tight correlation with commodity prices and equity markets in recent weeks. "The Canadian dollar is used to doing its own thing lately," said David Bradley, director of foreign exchange trading at Scotiabank. "We'll need some really positive data, not only out of China but out of Europe and the U.S. as well, to see the Canadian dollar rally significantly again." The currency dipped sharply last week after the Bank of Canada said it would hold rates steady for longer than it had previously expected, with tepid inflation data later in the week backing up that stance. Investors will be seeking clues about the strength of the North American economy from U.S. fourth quarter GDP figures on Wednesday and Canada's November growth numbers on Thursday. They will also pay close attention to the U.S. Federal Reserve's two-day policy meeting starting later on Tuesday. Moody's cut the ratings of six Canadian lenders on Monday, citing concerns about rising consumer debt and high housing prices. At 8:10 a.m. (1310 GMT) the Canadian dollar was trading at C$1.0056 to the greenback, or 99.44 U.S. cents, compared with C$1.0065, or 99.35 U.S. cents, at Monday's North American close. Prices for the two-year bond were up 1 Canadian cent to yield 1.148 percent, while the benchmark 10-year bond slipped 2 Canadian cents to yield 1.963 percent.
© Thomson Reuters 2017 All rights reserved.