CANADA FX DEBT-C$ rebounds from recent weakness; data in focus
* Canadian dollar at C$1.0952, or 91.31 U.S. cents * Bond prices mostly lower across the maturity curve By Leah Schnurr TORONTO, Aug 21 (Reuters) - The Canadian dollar firmed against the greenback on Thursday, rebounding after a nearly 1 percent drop over the last two days, ahead of some key domestic economic data due at the end of the week. Concerns about the prospects for global growth hit the loonie overnight after data showed business growth in China and Europe slowed in August. The worries took the Canadian dollar to a nearly two-week low in earlier trading before it was able to claw back some gains. Investors were turning their attention toward Canadian inflation and retail sales reports that will be released on Friday. With a quiet economic calendar at home, the reports will be the main domestic events of the week. Although the loonie has made some sizeable intraday moves in recent weeks, it has largely stayed within a trading range. Analysts expect the ongoing favor for the U.S. dollar as the economy south of the border picks up to continue to weigh on the loonie, which could test the C$1.10 resistance level before long. "The overall theme for the Canadian dollar this morning is a bit of a breather from yesterday's selloff," said Scott Smith, senior market analyst at Cambridge Mercantile Group in Calgary. "The U.S. dollar has rallied pretty strongly over the last three to four sessions, so I think we're seeing a bit of a breather and a little bit of position-squaring ahead of a big risk day tomorrow." The Canadian dollar was at C$1.0952 to the greenback, or 91.31 U.S. cents, stronger than Wednesday's close of C$1.0971, or 91.15 U.S. cents. Investors were also focused on the start of the annual gathering of economists and policymakers in Jackson Hole, Wyoming, later on Thursday. Federal Reserve Chair Janet Yellen is scheduled to speak on Friday. Canadian government bond prices were mostly lower across the maturity curve, though the two-year was unchanged to yield 1.092 percent. The benchmark 10-year was down 6 Canadian cents to yield 2.107 percent.
© Thomson Reuters 2016 All rights reserved.