CANADA FX DEBT-C$ at nearly one-month high as U.S. dollar slides
* Canadian dollar at C$1.0879 or 91.92 U.S. cents * Bond prices mixed across the maturity curve (Adds details, quotes, updates prices) By Leah Schnurr TORONTO, May 6 (Reuters) - The Canadian dollar shrugged off mixed domestic trade data and strengthened to its highest level against the greenback in nearly a month on Tuesday as its U.S. counterpart weakened broadly. With the gain, the loonie also broke out of its recent trading range. The currency has been comfortable trading around either side of C$1.10 the past few weeks, but Tuesday's action pushed it into the high C$1.08s. Even data that showed Canada posted a smaller-than-expected trade surplus in March did not clip the loonie's wings. The surplus fell to C$79 million ($72.06 million) as exports fell and imports rose. Still, February's surplus was revised sharply higher to C$847 million from the C$290 million initially reported. The U.S. dollar was the focus in currency markets after bullish European data prompted investors to look past recent signs of U.S. economic improvement and sell the greenback. The U.S. dollar was down 0.5 percent against a basket of currencies . "All year, it's been the story that the Canadian dollar has been weak, weak, weak, but a lot of the other currencies have actually been strong against the U.S. dollar," said Camilla Sutton, chief currency strategist at Scotiabank in Toronto. "All of a sudden, I think we have right now a really broad U.S. dollar move taking place, which is bringing a strengthening Canadian dollar on the back of it." The Canadian dollar ended the North American session at C$1.0879 to the greenback, or 91.92 U.S. cents, stronger than Monday's close of C$1.0952, or 91.31 U.S. cents. The currency hit a session high of C$1.0874, its highest level since early April. "Overnight moves were a bit of a momentum play," said Greg Moore, senior currency strategist at Royal Bank of Canada in Toronto. Canadian government bond prices were mixed across the maturity curve, with the two-year up half a Canadian cent to yield 1.072 percent, while the benchmark 10-year was off 2 Canadian cents to yield 2.372 percent. (Editing by Peter Galloway)
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