CANADA FX DEBT-C$ little changed ahead of economic data

Wed Dec 15, 2010 8:21am EST
 
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 * C$ largely flat at 99.43 U.S. cents
 * Canadian bond prices flat to higher across curve
 By Jennifer Kwan
 TORONTO, Dec 15 (Reuters) - The Canadian dollar was largely
flat against the U.S. currency on Wednesday, kept in a tight
range after the U.S. Federal Reserve's cautious assessment on
the economy and Moody's warned about Spain's debt rating.
 The U.S. Fed's statement Tuesday contained little
acknowledgment of the recent uptick in economic data but
focused squarely on high unemployment. For details, see
[ID:nTLAENE627]
 Rating agency Moody's warned Spain on Wednesday its debt
rating could be downgraded, citing concerns about its high debt
funding needs, though it said it did not believe Spain would
need an EU bailout, like Greece and Ireland. [ID:nL3E6NF0D8]
 At 8:05 a.m. (1305 GMT), the Canadian dollar CAD=D4 stood
at C$1.0057 to the U.S. dollar, or 99.43 U.S. cents, virtually
unchanged from Tuesday's close at at C$1.0065 to the U.S.
dollar, or 99.35 U.S. cents.
 Given the caution, the Canadian currency searched for
direction from economic data, said Jeremy Stretch, head of
foreign exchange strategy at CIBC World Markets in London.
 "It's a pretty dull session if you're coming in and you're
looking at the trading range of the day. It is suggesting that
there's not a great deal of impetus one way or another this
morning," he said.
 "We're waiting to see how the data drops out over the
course of the rest of the session."
 The Canadian currency's range was C$1.0048 to C$1.0095 to
the U.S. dollar.
 Markets awaited a raft of U.S. data to be released this
week, including U.S. inflation data for November due Wednesday.
As well, markets will eye Canadian manufacturing data.
ECONCA
 Other figures this week include housing data, weekly
jobless figures and regional manufacturing numbers. ECONUS
 Canadian bond prices were flat to higher across the curve,
tracking U.S. Treasury prices, where debt prices rose on short
covering after the Moody's warning on Spain. [US/]
 The interest-rate sensitive two-year bond CA2YT=RR edged
6 Canadian cents higher to yield 1.719 percent, while the
10-year bond CA10YT=RR climbed 30 Canadian cents to yield
3.314 percent.
  (Reporting by Jennifer Kwan; editing by Jeffrey Benkoe)