CANADA FX DEBT-C$ eases slightly ahead of Bank of Canada speech

Wed Mar 25, 2015 4:51pm EDT
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(Updates with fresh details, comments, closing figures)
    * Canadian dollar at C$1.2517 or 79.89 U.S. cents
    * Bond prices mostly lower across the maturity curve

    By Solarina Ho
    TORONTO, March 25 (Reuters) - The Canadian dollar was
marginally softer against its U.S counterpart on Wednesday,
ahead of a much anticipated speech by Bank of Canada Governor,
Stephen Poloz, on Thursday, and despite higher oil prices and a
softer greenback.
    With little domestic data to drive direction this week,
market participants have been focusing on Poloz's upcoming
speech, as well as comments this afternoon from deputy governor
Tim Lane.
    Lane's speech, which reiterated the Bank's previously stated
economic views, failed to move the currency.
    "All things equal, nothing ground breaking, nothing earth
shattering in his speech," said Jack Spitz, managing director of
foreign exchange at National Bank Financial.
    Spitz said the market will be keenly focused on Poloz, who
has moved the Canadian dollar on several occasions with his
comments about the central bank's monetary policy direction and
its outlook on the economy.
    "When he speaks it will be commanding the market's
attention, at least from the Canadian dollar perspective," he
said, adding that for now, "the Canadian dollar continues to
oscillate around 80 cents."
    The Canadian dollar, finished the session at
C$1.2517 to the greenback, or 79.89 U.S. cents, a very modest
retreat from Tuesday's close of C$1.2501, or 79.99 U.S. cents.
    In the very near term, the currency will likely trade
between C$1.2410 and C$1.2550, Spitz said, with the next notable
levels being C$1.2350 and C$1.26.
    Earlier in the session, data showed U.S. business investment
spending plans fell for a sixth straight month in February,
likely pulled lower by weak global demand and the rallying U.S.
dollar. The greenback fell on the report, the latest to suggest
economic growth has slowed and could prompt economists to
further scale back first-quarter growth forecasts.
    "(The weak U.S. dollar's) helped the Canadian dollar perform
pretty well, along with most other currencies and you've got oil
prices coming back to some extent. Still weak, but well off our
lows," said Benjamin Reitzes, senior economist and foreign
exchange strategist at BMO Capital Markets.
    Canadian government bond prices were mostly lower across the
maturity curve, with the two-year down 7 Canadian
cent to yield 0.503 percent and the benchmark 10-year
 up 35 Canadian cents to yield 1.340 percent.

 (Editing by Andrew Hay)