CANADA FX DEBT-C$ softens; focus shifts to Bank of Canada's Poloz

Mon Nov 3, 2014 10:01am EST
 
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* Canadian dollar at C$1.1293  or 88.55 U.S. cents
    * Bond prices mixed across the maturity curve

    By Solarina Ho
    TORONTO, Nov 3 (Reuters) - The Canadian dollar was
marginally weaker against its U.S. counterpart on Monday at the
start of a busy week of economic events, including a speech by
Bank of Canada Governor Stephen Poloz later in the day and key
jobs data on Friday.
    The speech will be Poloz's first since the Bank of Canada's
quarterly Monetary Policy Report (MPR) a week and a half ago, in
which it dropped any reference to taking a neutral stance on
interest rates. Poloz will also hold a news conference 
 
    The central bank is expected to maintain an accommodating
monetary policy for an extended period, but investors will still
be keen for additional details on the bank's economic views. A
scheduled press conference following the MPR last month was
canceled due to a deadly shooting on Parliament Hill in Ottawa. 
    "The Q&A could serve as a bit of a follow-up to the canceled
press conference from the last communique, so there could be
some potential fireworks there," said Mazen Issa, senior Canada
macro strategist at TD Securities.
    "But I think the theme of a weaker Canadian dollar has been
firmly entrenched now. He'll have to say something very
substantial to ... really get a dramatic reaction from the
USD/CAD."   
    At 9:31 a.m. (1431 GMT), the Canadian dollar was at
C$1.1293 to the greenback, or 88.55 U.S. cents, slightly weaker
than Friday's close of C$1.1286, or 88.61 U.S. cents.
    A slew of economic data, especially from the United States,
is expected this week, culminating with monthly job reports on
both sides of the border.
    "Over the course of the week, there are enough event risks
this week that would provide scope for volatility," said Issa,
but added that the overall bias was still toward a weaker
Canadian dollar. 
    The federal government will also provide an economic update
this month, Finance Minister Joe Oliver said on Twitter on
Sunday.
    Canadian government bond prices were mixed across the
maturity curve, with the two-year bond up 1.7
Canadian cents to yield 1.017 percent, and the benchmark 10-year
 losing 2 Canadian cents to yield 2.050 percent.

 (Editing by Peter Galloway)