CANADA FX DEBT-C$ slips lower as momentum dries up

Thu Feb 12, 2009 9:46am EST
 
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* C$ slips after Wednesday's late-session rally

* Canada's economic data calendar empty until next week

* Bonds pare early gains after strong U.S. retail data

By Frank Pingue

TORONTO, Feb 12 (Reuters) - The Canadian dollar was a touch lower versus the U.S. currency on Thursday morning as a lack of any Canadian data to inspire a move persuaded the market to let the currency drift after Wednesday's late-session rally.

There is no Canadian economic data due for the remainder of the week, which likely means moves in the Canadian dollar will be dictated by the performance of the greenback.

The Canadian dollar made late-session gains on Wednesday, spurred by the U.S. congressional deal on an economic stimulus package, which raised the market's risk appetite and reversed the losses the currency suffered earlier in the day when Canada posted its first monthly trade deficit in almost 33 years.

"There's just no sort of momentum at this stage and I think a lot of people took their bets and positioning after the trade numbers," said Michael Gregory, senior economist at BMO Capital Markets.

"Plus there's nothing on the Canadian economic front for the rest of this week, so I think people just decided to punt around a few other currencies and maybe re-look at the Canadian dollar next week."   Continued...