CANADA FX DEBT-C$ stays confined in narrow range as focus turns to GDP
* Canadian dollar at C$1.0861 or 92.07 U.S. cents * Bond prices higher across the maturity curve (Adds details of day's activity , quotes, updates prices) By Leah Schnurr TORONTO, May 27 (Reuters) - The Canadian dollar was nearly flat against the greenback on Tuesday, backing off the more than two-week high it hit earlier in the session as investors positioned for key economic reports later in the week. The currency has been stuck in a narrow range in recent weeks as investors weigh generally strengthening domestic economic data against a central bank that has kept a neutral policy stance. Although the domestic economic calendar is relatively quiet this week, attention was on first-quarter current account figures to be released on Thursday and on first-quarter economic growth on Friday. The United States will release its first-quarter growth figures on Thursday. "People are just position-squaring in advance of the data releases that are going to come out," said Rahim Madhavji, president at KnightsbridgeFX.com in Toronto. "All eyes are on Canadian and U.S. GDP. The economy that outperforms will see its currency rise, and that's really the next catalyst for the Canadian dollar in the short term." The Canadian dollar ended the North American session at C$1.0861 to the greenback, or 92.07 U.S. cents, nearly unchanged from Monday's close of C$1.0860, or 92.08 U.S. cents. The loonie touched a high of C$1.0836 in early morning trading, its highest level since early May. The loonie has received some modest support from data last week that showed a pick up in the consumer price index. Markets expect that could give the Bank of Canada cause to sound less dovish when it releases its latest policy statement next week. "You've had a modest strengthening bias for Canada, there's a bit of a hangover effect from the firmer CPI," said Mark Chandler, head of Canadian fixed income and currency strategy at Royal Bank of Canada in Toronto. Canadian government bond prices were higher across the maturity curve, with the two-year up half a Canadian cent to yield 1.055 percent, and the benchmark 10-year up 23 Canadian cents to yield 2.299 percent. (Editing by Peter Galloway)
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