CANADA FX DEBT-C$ consolidates after last week's gains
* Canadian dollar at C$1.0969 or 91.17 U.S. cents * Bond prices higher across the maturity curve (Adds details, quote, updates prices) By Leah Schnurr TORONTO, April 7 (Reuters) - The Canadian dollar firmed modestly against the greenback on Monday with gains limited by investors consolidating their positions after the currency's runup late last week following a robust domestic jobs report. The backdrop on Monday was the provincial election in Quebec, with polls closing at 8 p.m. EDT (2400 GMT). But with the governing separatist party behind in public opinion surveys, the loonie was not expected to see much impact. The Bank of Canada released its first-quarter survey of business managers in what was set to be an otherwise light week for domestic economic data. The survey showed Canadian businesses widely expect their input costs to rise as a result of the weaker loonie and painted a relatively upbeat view of economic growth over the next 12 months. The survey "seemed a little more upbeat, people responding somewhat to the weaker currency as a bit of a positive on the export side," said Don Mikolich, executive director of foreign exchange sales at CIBC World Markets in Toronto. The loonie rose strongly at the end of last week after data showed the domestic economy added twice as many jobs as expected in March. On Monday, the Canadian dollar ended the North American session at C$1.0969 to the greenback, or 91.17 U.S. cents, a bit firmer than Friday's close of C$1.0981, or 91.07 U.S. cents. Last week's data had pushed the loonie through C$1.10, piercing the psychologically important level for the first time in a month. That level will likely continue to be a meaningful pivot for the currency, said Scott Smith, senior market analyst at Cambridge Mercantile Group in Calgary. "This level is going to be pretty important resistance on the way back up if the U.S. dollar starts to gain more strength here," he said. In Quebec, the latest opinion polls showed the Liberals ahead of the separatist Parti Quebecois, tamping down concerns over a possible referendum on independence from Canada. In the past, Quebec has had two referendums on whether to separate, both of which failed. The separatists lost the last one, in 1995, but by just over one percentage point. "Compared to the other two situations where Quebec had their referendum and we saw the Canadian dollar weaken off quite significantly, I don't think there's a big risk for this election," Smith said. "Markets obviously don't like indecision, and they don't like the possibility of potentially having a referendum, but that's been played down over the last few weeks." Canadian government bond prices were higher across the maturity curve, with the two-year up 1 Canadian cent to yield 1.082 percent, and the benchmark 10-year up 27 Canadian cents to yield 2.462 percent. (Editing by Peter Galloway)
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