CANADA FX DEBT-C$ pulls back from one-month high as data weighs
* Canadian dollar at C$1.0897 or 91.77 U.S. cents * Bond prices lower across the maturity curve By Leah Schnurr TORONTO, May 7 (Reuters) - The Canadian dollar weakened modestly against the greenback on Wednesday, easing from the previous session's nearly one-month high as data showed Canadian building permits fell unexpectedly in March. Investors were also looking ahead to testimony from U.S. Federal Reserve Chair Janet Yellen later in the morning, while the main data focus of the week will be the Canadian April employment report due on Friday. The Canadian dollar was taking a breather after Tuesday's selloff of the U.S. dollar helped it push strongly higher and out of its recent trading range. The currency had been comfortable around either side of the key C$1.10 level in recent weeks, but Tuesday's action pushed it into the high C$1.08s. "We've more narrowly defined ourselves a bit lower right now," said Don Mikolich, executive director of foreign exchange sales at CIBC World Markets in Toronto. The U.S. dollar-Canadian dollar pairing could see support at the C$1.0860 and C$1.0840 levels, Mikolich said, while the top could be limited at C$1.0960. The Canadian dollar was at C$1.0897 to the greenback, or 91.77 U.S. cents, weaker than Tuesday's close of C$1.0879, or 91.92 U.S. cents. The loonie lost steam after data showed the value of building permits issued in Canada fell 3 percent in March, though residential permits inched higher. The report could temper expectations for housing starts data due on Thursday, though it can often take two or three months for the impact of building permits to be seen in the starts figures, Mikolich said. Canadian government bond prices were lower across the maturity curve, with the two-year off 1-1/2 Canadian cents to yield 1.079 percent and the benchmark 10-year down 5 Canadian cents to yield 2.380 percent. (Editing by Peter Galloway)
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