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* C$ at C$0.9930 vs US$ or $1.0070 * Reaches C$0.9875 shortly after Obama victory * ECB comments weigh on sentiment By Solarina Ho TORONTO, Nov 7 (Reuters) - Canada's dollar weakened modestly against the U.S. currency on Wednesday after comments from the European Central Bank on the region's tough economic outlook erased gains made overnight following U.S. President Barack Obama's re-election. Joining a brief rally in other commodity-linked currencies, the Canadian dollar earlier strengthened to a near three-week high of C$0.9875 to the greenback, or $1.0127. Obama defeated Republican challenger Mitt Romney on Tuesday night after a grueling presidential race. His fellow Democrats retain control of the Senate and Republicans keep the majority in the House of Representatives, however, giving them power to curb the president's legislative ambitions. "No huge surprises. It's nice that it was definitive, because the market would've been a little uptight if we'd had any sort of delayed result or any questions around it," said Don Mikolich, executive director, foreign exchange sales at CIBC World Markets. "The Canadian dollar benefited as the results came up because it'll be a continuation of the quantitative easing they've been doing, which is generally a negative for the U.S. dollar." But the currency slipped after ECB President Mario Draghi said the bank expects the euro zone economy to remain weak "in the near term", adding that inflation was well contained. The central bank also said its new bond-buying program allows for unlimited interventions in sovereign debt markets and should dispel concerns about a euro zone break-up. As the trading day opened in North America, the Canadian dollar slipped to C$0.9930 to the U.S. dollar, or $1.0070, weaker than its North American finish on Tuesday at C$0.9918, or $1.0083. "The comments from the ECB ... weighed on sentiment a little bit so you saw Canada weaken off on that news and I think U.S. dollar gained some of that safe-haven flow on the risk-off reaction to it," said Mikolich. Now that the U.S. election is over, investor focus will return to economic data, European developments and the so-called "fiscal cliff" in the U.S., said Mikolich, adding that the expected trading range for the Canadian dollar still remained C$0.9850 to U.S. dollar parity in the near term. The price of Canadian government debt rose across the curve. The two-year government of Canada bond was up 9 Canadian cents to yield 1.072 percent, while the benchmark 10-year bond was up 67 Canadian cents to yield 1.733 percent.