CANADA FX DEBT-C$ breaks out of recent range to hit 2-week high
* Canadian dollar at C$1.0951 or 91.32 U.S. cents * Bond prices mixed across the maturity curve (Adds comments by Poloz, quotes, updates prices) By Leah Schnurr TORONTO, April 29 (Reuters) - The Canadian dollar strengthened to a more than two-week high against the greenback on Tuesday, breaking out of its recent range as investors positioned for a busy week that could provide insight on monetary policy on both sides of the border. In strengthening, the Canadian dollar broke through its 100-day moving average after weeks of trading sideways. The currency had been content to hover around the C$1.10 level in recent sessions as investors weighed modestly upbeat domestic economic data against the central bank's still-neutral policy stance. Investors got a chance to assess that stance on Tuesday with Bank of Canada policymakers answering questions from parliamentarians. The loonie had little reaction to comments from Governor Stephen Poloz, even though he told the House of Commons finance committee that the currency remains "quite high" in a historical sense. Poloz and Deputy Senior Governor Tiff Macklem will return to Parliament Hill on Wednesday for another round of questioning. Analysts said the loonie was driven by position-jockeying ahead of a policy statement from the U.S. Federal Reserve later in the week. Also on tap are Canadian monthly gross domestic product figures and a slew of U.S. economic data, including the April unemployment report. Canada will release its labor market data next week. "Overall, the story today is really flow of funds and people repositioning ahead of where they think they want to be ahead of data at the end of the week and next week," said Rahim Madhavji, president at KnightsbridgeFX.com in Toronto. The Canadian dollar ended the North American session at C$1.0951 to the greenback, or 91.32 U.S. cents, stronger than Monday's close of C$1.1025, or 90.70 U.S. cents. The loonie hit a 4-1/2-year low in March before bouncing higher, though that rally had largely lost momentum this month. The Canadian dollar entered the year as a favorite short trade for some investors, and many analysts still expect it to weaken substantially before the end of 2014. There would need to be either a build in positive sentiment over the currency or a shift away from Poloz's dovish stance to suggest that a bullish turn is taking place for the Canadian dollar, said Camilla Sutton, chief currency strategist at Scotiabank in Toronto. "We haven't seen really either of those, so I think for now for the U.S. dollar-Canadian dollar, it's still a story of either side of C$1.10 as a very comfortable place." Canadian government bond prices were mixed across the maturity curve, with the two-year off 1 Canadian cent to yield 1.082 percent, while the benchmark 10-year was up 4 Canadian cents to yield 2.444 percent. (Editing by Peter Galloway)
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