CANADA FX DEBT-C$ steady with U.S. markets closed
* Canadian dollar at C$1.0860 or 92.08 U.S. cents * Bond prices lower across the maturity curve (Adds details, quotes, updates prices) By Leah Schnurr TORONTO, May 26 (Reuters) - The Canadian dollar was little changed on Monday, sticking to its recent trading range in a session made quiet by the U.S. Memorial Day holiday. So far in May, the Canadian dollar has largely moved sideways as analysts weigh generally improving economic data against the Bank of Canada's neutral policy stance. The central bank shifted away from its hawkish bias last October, pressuring the loonie. Analysts say the currency could be hemmed in until there is either a change in the Bank of Canada's tone or a breakout in the U.S. dollar as the economic recovery south of the border takes hold. Market focus is starting to turn to the Bank of Canada's next policy statement, which will be issued next week. Volumes on Monday were muted with U.S. markets closed for Memorial Day, while markets in London were also closed. "U.S dollar-Canadian dollar is staying in that range from C$1.0845 to C$1.9895. It's a pretty narrow band but that's where initial support and resistance comes in," said Don Mikolich, executive director of foreign exchange sales at CIBC World Markets in Toronto. The Canadian dollar ended the North American session at C$1.0860 to the greenback, or 92.08 U.S. cents, slightly stronger than Friday's close of C$1.0870, or 92.00 U.S. cents. The euro was little changed against the Canadian dollar as investors took in the results of European Parliament elections. While Euroskeptic nationalists racked up victories in France and Britain, pro-European forces held firm in Germany and Italy. "Right now, we're not a point where we're going to see the EU blow up or there's going to be any major changes in the extremely near term," said Scott Smith, senior market analyst at Cambridge Mercantile Group in Calgary. "The one surprising thing is that the surge in anti-EU parties acts as a warning shot to the status quo in the European zone right now." The euro was trading at C$1.4813. Canadian government bond prices were lower across the maturity curve, with the two-year off 0.7 of a Canadian cent to yield 1.058 percent and the benchmark 10-year down 16 Canadian cents to yield 2.324 percent. (Editing by Peter Galloway)
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