CANADA FX DEBT-C$ hits 5-week low with focus on U.S. data
* Canadian dollar at C$1.0817 or 92.45 U.S. cents * Bond yields drop, 10-yr at more than 1-yr low By Leah Schnurr TORONTO, July 29 (Reuters) - The Canadian dollar weakened to touch its lowest level in more than five weeks against the greenback on Tuesday, caught by a wave of favor for the U.S. dollar that was spurred by optimism over U.S. economic data due later in the week. While Canada has a busy economic calendar this week, with May economic growth and June producer prices on tap, the market's main focus will be on the slew of U.S. data. It includes July's unemployment report and the first look at second-quarter economic growth, while a two-day Federal Reserve meeting gets underway on Tuesday. The greenback's push sent the loonie further into the C$1.08 area, dropping as low as C$1.0827 early in the day. "Everything against the U.S. dollar was driven lower very quickly," said Greg Moore, senior currency strategist at Royal Bank of Canada in Toronto. "It looks more dramatic given we've been in such a tight range the past day and a half." "Part of it does reflect the fact that consensus seems to be getting a little bit more optimistic on the outcome of various U.S. events this week." The Canadian dollar was at C$1.0817 to the greenback, or 92.45 U.S. cents, weaker than Monday's close of C$1.0800, or 92.59 U.S. cents. After trading largely sideways for two weeks, the loonie dropped sharply on Friday, pushing through some key technical levels to break out of the range it had been in. The U.S. dollar-Canadian dollar pairing faces near-term resistance at C$1.0835, which is its 200-day moving average, as well as some trend resistance at C$1.0843, Moore said. Overall, Friday's move seems to have shifted the bias higher for the pair, he added, to the detriment of the loonie. Canadian government bond yields were lower across the maturity curve, mirroring a drop in U.S. Treasuries yields. The yield on the benchmark Canadian 10-year fell to 2.105 percent, a more than one-year low . The two-year was up 1 Canadian cent to yield 1.081 percent. (Editing by Peter Galloway)
© Thomson Reuters 2017 All rights reserved.