CANADA FX DEBT-Canada's dollar heads higher in range trade

Mon Jun 13, 2011 4:39pm EDT
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* C$ up at C$0.9768 to the U.S. dollar, or $1.0238

* Bond prices mixed (Updates to close)

TORONTO, June 13 (Reuters) - Canada's dollar pulled off a small gain against the U.S. dollar on Monday despite being hemmed into a fairly tight range by a lack of economic data and softer resource prices.

Canadian government bond prices were mixed, in line with their U.S. counterparts.

Market sentiment overall was hurt by Standard & Poor's decision on Monday to cut its debt rating for Greece by three notches to junk territory, saying the country is increasingly likely to restructure its debt in a way the ratings agency would consider a default. [ID:nN13126859]

The Canadian dollar traded between C$0.9752 and C$0.9799, tighter than last week's range of C$0.9711 and C$0.9803. Its lowest level during North American trading hours, C$0.9796, corresponded with a dive in the Toronto stock market's main index to a six-month low. [.TO] .GSPTSE

"It's rangebound. I think we're just consolidating a little bit after Friday's losses," said David Tulk, chief Canada macro strategist at TD Securities.

The Canadian dollar was undercut on Friday by soft commodities and a flight to safety after hitting its highest level since June 1 on a better than expected domestic employment report.

Commodity prices offered little catalyst for Canadian dollar movement on Monday. Prices for oil -- one of Canada's major exports -- dropped more than 2 percent.   Continued...