CANADA FX DEBT-C$ crawls higher in subdued trade, bonds up

Mon Dec 20, 2010 8:23am EST
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* C$ tips higher to 98.78 U.S. cents

* Mild price gains across the government bond curve

TORONTO, Dec 20 (Reuters) - The Canadian dollar was little changed against the U.S. currency on Monday, eyeing a relatively narrow range while drawing mild support from firmer commodity prices.

After sliding for two straight sessions last week, the Canadian dollar began a data-filled week relatively flat.

It crept to a session high at C$1.0103 to the U.S. dollar in early trade, bouncing from C$1.0141 to the U.S. dollar, as North American stock index futures indicated a higher open and the price of oil pushed up.

Trading, however, was expected to be subdued as year-end holidays approach.

At 8 a.m. (1300 GMT), the Canadian dollar CAD=D4 was at C$1.0124 to the U.S. dollar, or 98.78 U.S. cents, up slightly from C$1.0128 to the U.S. dollar, or 98.74 U.S. cents, at Friday's close.

"The C$1.0140-50 level represents the topside resistance technically. It's been unsuccessfully tested on a number of occasions, so that represents the near-term target for (U.S.) dollar bulls," said Jack Spitz, managing director of foreign exchange at National Bank Financial. He put support at C$1.0090 to the U.S. dollar, and further out at C$1.0040 to the U.S. dollar.   Continued...