CANADA FX DEBT-Loonie softens to one-week low, but hews to recent range
* Canadian dollar at C$1.0758 or 92.95 U.S. cents * Bond prices higher across the maturity curve By Leah Schnurr TORONTO, July 25 (Reuters) - The Canadian dollar softened to a one-week low against its U.S. counterpart on Friday, pressured by stronger-than-expected durable goods data south of the border, which benefited the greenback. The loonie had started to weaken in overnight trading, tripped up by wide U.S. dollar strength. But with little domestic economic news this week, the Canadian currency has largely traded sideways, taking its cues from U.S. data and vacillating investor sentiment over the crises in Gaza and Ukraine. The U.S. data showed orders for long-lasting manufactured goods rose 0.7 percent in June, suggesting some momentum for the economy. The loonie touched a session low of C$1.0769 after the report was released, its lowest level in a week and a half. "There's been a melt up in U.S. dollar-Canadian dollar looking at it over the last number of days," said Jack Spitz, managing director of foreign exchange at National Bank Financial in Toronto. "The lack of domestic data, combined with an overall bid to the U.S. dollar has contributed to a move higher in U.S. dollar-Canadian dollar." He added that the Canadian dollar and other commodity currencies are playing defense for several reasons, "whether it's central bank guidance or a move lower in commodities, but the Canadian dollar is following suit with the commodity block." The Canadian dollar was at C$1.0758 to the greenback, or 92.95 U.S. cents, weaker than Thursday's close of C$1.0745, or 93.07 U.S. cents. The loonie was off 0.3 percent for the week so far, with analysts expecting it to keep treading the same range it has been in recently in the near term. Still, there will be some potentially market-moving events next week, including gross domestic product reports on both sides of the border, the U.S. unemployment report for June, and a U.S. Federal Reserve meeting. Canadian government bond prices were higher across the maturity curve, with the two-year up 1 Canadian cent to yield 1.093 percent and the benchmark 10-year up 21 Canadian cents to yield 2.135 percent. (Editing by Peter Galloway)
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