CANADA FX DEBT-C$ extends weakness vs US$ as recent soft data drags
* C$ at C$1.0055 vs US$, or 99.45 U.S. cents * Investors clearing positions * C$ expected to trade between C$1.0040 and C$1.0090 * Bonds weaker across curve By Solarina Ho TORONTO, Feb 12 (Reuters) - The Canadian dollar was weaker against its U.S. counterpart on Tuesday and traded near two-week lows, pressured in part by recent, unexpectedly weak Canadian economic data. The currency has struggled in the wake of Friday's reports that showed surprise job losses in January and lower-than-expected housing starts. "There's still a bit of follow-through from the weak employment data we saw on Friday," said David Bradley, director of foreign exchange trading Scotiabank, adding that the currency was expected to remain weak in the short term. "I don't think there's a lot of fresh long USD/CAD positions being put in the market right now. A lot of it is stale positions getting cleared out...I think the market for the time being is looking to buy dollars on any dips lower." The currency was trading at C$1.0055 versus the U.S. dollar, or 99.45 U.S. cents, softer than Monday's North American session close at C$1.0043, or 99.57 U.S. cents. Bradley expected the currency to trade between C$1.0040 and C$1.0090 for the day. Investors are also eyeing comments by Bank of Canada governor Mark Carney who will be addressing the Canadian parliamentary committee on Tuesday. With the exception of the sterling and the Japanese yen, where it was trading at more than 2-1/2 year highs, Canada's dollar was mostly weaker against other major currencies. "It seems as though there's some cross interest going through the market to sell Canada," said Bradley, adding that the Canadian dollar was not seeing any spillover from the "currency wars" dominating foreign exchange markets. The Group of Seven industrialized nations issued a statement urging countries to refrain from competitive devaluations, reacting to weeks of concern that the monetary easing policy of Japan's new government, which has also weakened its currency, could trigger far-reaching currency wars. Canadian government bond prices were lower across the curve, with the price of a two-year bond down 1.5 Canadian cents to yield 1.124 percent and the benchmark 10-year bond down 10 Canadian cents, yielding 1.986 percent.
© Thomson Reuters 2017 All rights reserved.