3 Min Read
* C$ tilts higher to 98.06 U.S cents
* Central banks, data, U.S. elections jockey for attention
* Ottawa to rule on BHP's bid for Potash Corp this week
TORONTO, Nov 1 (Reuters) - The Canadian dollar edged up against a generally softer U.S. currency on Monday, while government bonds were little changed, as market players expected range trading ahead of an eventful week, starring the U.S. Federal Reserve's expected monetary easing.
No domestic economic news is scheduled on Monday. Much of the global market's focus remains on the Fed's decision on the size and composition of asset purchases expected by the central bank, which is set to meet Nov. 2-3.
Policy decisions are also due from the Europen Central Bank as well as the central banks of Australia, Japan, and England. The week is also chock full of data, including the Canadian and U.S. readings of the labor market for October on Friday, while U.S. elections on Tuesday are also high on investors' radar. [ID:nLDE6A00QV]
"There's too much event risk. Prudent traders are going to stay on the sidelines," said Michael O'Neill, managing director at Knightsbridge Foreign Exchange. He expected the range to be between C$1.0140-C$1.0280.
The currency traded in a relatively narrow range, between C$1.0155-C$1.0222, so far in the session but managed to touch a two-week high before backing off.
Investors will also be keeping an eye on developments in Anglo-Australian miner BHP Billiton's push to buy Potash Corp., a fertilizer giant and one of Canada's biggest companies.
Ottawa is due to decide by Nov. 3 whether BHP's bid for Potash Corp will bring a net benefit to Canada, which would allow it to clear the bid or approve it with conditions. [ID:nN22340110]
The deal, currently worth $39 billion, had sent the Canadian dollar soaring when the deal was first announced in August. If successful, the currency is likely to get another boost as the international buyer would need the Canadian currency to purchase Potash shares from local investors.
At 8:02 a.m. (1202 GMT), the Canadian dollar was at C$1.0198 to the U.S. dollar, or 98.06 U.S cents, up slightly from C$1.0202 to the U.S. dollar, or 98.02 U.S. cents.
The two-year bond CA2YT=RR was off 1 Canadian cent to yield 1.412 percent, while the 10-year bond CA0YT=RR added 2 Canadian cents to yield 2.802 percent.
(Reporting by Ka Yan Ng, Editing by Chizu Nomiyama)