CANADA FX DEBT-C$ stays rangebound to close out the week
* Canadian dollar at C$1.1023 or 90.72 U.S. cents * Bond prices higher across the maturity curve By Leah Schnurr TORONTO, April 25 (Reuters) - The Canadian dollar was little changed against the greenback on Friday, sticking to its recent trading range as investors found few catalysts to push the currency decisively in either direction. Concerns over heightened tensions in Ukraine kept markets cautious. Russia warned Kiev it would face justice for a "bloody crime" in eastern Ukraine, where Ukrainian forces killed up to five pro-Russian rebels a day earlier. The focus on geopolitical risk in the region has seen risk aversion ebb and flow in recent months. Analysts said a speech from the head of the Bank of Canada late on Thursday afternoon yielded few surprises. Governor Stephen Poloz reiterated the central bank's neutral stance and that an interest rate cut is just as possible as a rate hike. Poloz also said he was more hopeful than before about an export recovery. "It really seems like the Bank of Canada wants to stay as neutral for as long as possible - of course, more on the dovish side of that neutral bias," said Bipan Rai, director of foreign exchange strategy at CIBC World Markets in Toronto. "I think they're going to try to do that for as long as they can, at least until markets start considering Fed (rate) hikes again." The Canadian dollar was at C$1.1023 to the greenback, or 90.72 U.S. cents, slightly stronger than Thursday's close of C$1.1028, or 90.68 U.S. cents. The Canadian dollar's rally from March's 4-1/2-year low has run out of momentum the last two weeks. The currency has traded sideways in recent sessions as it hovers around the technically important C$1.10 level. Next week will bring potentially market-moving factors, including Canadian monthly gross domestic product figures. Investors will also get a slew of data from south of the border, including the April unemployment report and a policy-setting meeting from the Federal Reserve. "Really, what we're looking for to shake U.S. dollar-Canadian dollar out of this consolidative phase is stronger U.S. data, which should potentially lead to an increase in volatility in the front-end of the treasury curve and drive bids for the (U.S.) dollar higher," said Rai. Canadian government bond prices were higher across the maturity curve, with the two-year up 1-1/2 Canadian cents to yield 1.060 percent and the benchmark 10-year up 20 Canadian cents to yield 2.402 percent. (Editing by Meredith Mazzilli)
© Thomson Reuters 2017 All rights reserved.