CANADA FX DEBT-C$ ekes out slight gain in listless trade

Wed Aug 14, 2013 10:05am EDT
 
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* C$ at C$1.0328 to the greenback, or 96.82 U.S. cents
    * Little impetus to trade pair until domestic data on Friday

    TORONTO, Aug 14 (Reuters) - The Canadian dollar gained
slightly against the U.S. currency in slow trade on Wednesday,
and will likely offer little in the way of direction until the
release of domestic manufacturing data at the end of the week.
    The loonie, as Canada's currency is colloquially known, has
drifted in recent weeks, mostly pulled by changing market views
on when the U.S. Federal Reserve may withdraw some of its
stimulus. 
    "The last time the Canadian dollar really had any direction
of its own was the employment numbers last Friday," said Adam
Cole, global head of foreign exchange strategy at Royal Bank of
Canada.
    The loonie had weakened sharply after record job losses in
the public sector and scarce opportunities for young people led
to unexpected weakness in the Canadian labor market in July, but
the currency was then bought heavily to regain lost ground.
 
    "Aside from that we've just been seeing general toing and
froing in the U.S. dollar, and the Canadian being dragged around
by that," Cole said.
    The next opportunity for domestic news to influence the
currency comes on Friday, when data on manufacturing sales for
June is due to be released 
    "Domestic data do matter to a degree, obviously we're
starting to get the early indications on Q3 growth now,
including the manufacturing data fitting into that jigsaw," Cole
added. 
    At 9:44 a.m. (1344 GMT) the Canadian dollar was
trading at C$1.0328 to the greenback, or 96.82 U.S. cents,
compared with C$1.0343, or 96.68 U.S. cents, at Tuesday's North
American close.
    It is broadly expected to trade between C$1.0250 and
C$1.0450 this week, in keeping with its range of the past month.
    Prices for Canadian government debt were lower across the
curve, with the two-year bond off half a Canadian
cent to yield 1.207 percent and the benchmark 10-year bond
 falling 10 Canadian cents to yield 2.634 percent.