CANADA FX DEBT-C$ eases from 31-month high
* C$ dips to $1.0115
* Bond prices drift lower
By Claire Sibonney
TORONTO, Jan 13 (Reuters) - The Canadian dollar softened against the greenback on Thursday, trading in a tight range as investors were reluctant to take the currency much past a 31-month high hit in the previous session.
Still well above parity, the Canadian currency's movement held in a narrow 30-basis-point range following Wednesday's strong move, which marked the 12th straight session of gains as it broke through a key resistance level.
"The Canadian dollar is not likely to do much. It looks like it's going to consolidate its recent gains," said Michael O'Neill, managing director at Knightsbridge Foreign Exchange.
O'Neill expects the currency to trade between C$0.9850 and C$0.9940 for the rest of the session.
"It's still basically the flavor of the year. As long as oil is staying bid and the U.S. dollar regains some footing, you should see some more selling of euro and buying of Canada."
Brent oil futures climbed toward $100 a barrel, piling pressure on OPEC to raise production to prevent high prices hurting the world economy. [O/R]
At 7:55 a.m. (1255 GMT), the Canadian dollar CAD=D4 was at C$0.9886 to the U.S. dollar, or $1.0115, slightly down from Wednesday's North American close at C$0.9869 to the U.S. dollar, or $1.0133.
Some analysts believed the currency could slide before climbing further, hurt by the reluctance of traders to test near-record highs. For details, see [ID:nN12235221]
North American trade data as well as U.S. jobless claims and producer prices could provide further direction.
However, O'Neill said the Canadian trade numbers should be of little consequence. "In the big scheme of things ... as long as it comes in as expected, it's really irrelevant. Canada is still hostage to global developments."
Canadian bond prices were down slightly, despite a pickup in Treasuries and euro zone peripheral auctions passing without a hitch.
The two-year bond CA2YT=RR fell 2 Canadian cents to yield 1.762 percent, while the 10-year bond CA10YT=RR dropped 2 Canadian cents to yield 3.262 percent. (Reporting by Claire Sibonney; editing by Jeffrey Benkoe)
© Thomson Reuters 2016 All rights reserved.