CANADA FX DEBT-C$ steady with focus on upcoming data
* Canadian dollar at C$1.1035 or 90.62 U.S. cents * Bond prices lower across the maturity curve By Leah Schnurr TORONTO, April 2 (Reuters) - The Canadian dollar was little changed against the greenback on Wednesday as the currency consolidated after recent gains, while investors looked ahead to some key domestic economic reports later in the week. Since dropping to a 4-1/2 year low nearly two weeks ago, the Canadian dollar has managed to recover some losses and traders expect the currency could move sideways as it absorbs those gains. Better than expected Canadian producer prices data gave the loonie a lift on Tuesday, and the market was turning its focus to trade balance and labor market reports due on Thursday and Friday, respectively. "Right now we're seeing a market for U.S. dollar-Canadian dollar that's very range-bound, traders not wanting to take a large position either way until we see some more concrete domestic data later in the week," said Scott Smith, senior market analyst at Cambridge Mercantile Group in Calgary. The Canadian dollar was at C$1.1035 to the greenback, or 90.62 U.S. cents, slightly weaker than Tuesday's close of C$1.1032, or 90.65 U.S. cents. The currency earlier firmed to C$1.1003 before giving up those gains. Analysts expect the C$1.10 level will represent significant support for the U.S. dollar-Canadian dollar pairing that could prevent the loonie from pushing higher in the short term. On the topside, the pair should see resistance around the C$1.1050 to C$1.1060 area, Smith said. Smith said the loonie could break from that range if there is a surprise in Thursday's trade balance numbers or if something unexpected comes out of the European Central Bank's policy meeting, which is also on Thursday. Canadian government bond prices were lower across the maturity curve, with the two-year off 3 Canadian cents to yield 1.092 percent and the benchmark 10-year down 38 Canadian cents to yield 2.539 percent. (Editing by Peter Galloway)
© Thomson Reuters 2016 All rights reserved.