TORONTO (Reuters) - The Canadian dollar was little changed against the U.S. currency on Thursday, but strengthened to a one-week high against the euro after a string of weak gross domestic product reports hurt the single currency.
Both the German and French economies, the euro zone’s largest, shrank in the last three months of 2012, pushing the region deeper into recession.
Japan, which has been eyeing a weaker currency to boost exports, meanwhile posted a third straight quarterly GDP contraction.
The Canadian currency moved in a tight range against the greenback, compared to the sharp fluctuations in European currencies and the Japanese yen after the weak GDP data.
“It’s being overlooked in light of broader global macro and data related issues pertaining to Japan and Euro zone GDP numbers that missed expectations,” said Jack Spitz, managing director of foreign exchange at National Bank Financial.
At 9:09 a.m. (1409 GMT) the Canadian dollar was trading at C$1.0017 to the greenback, or 99.83 U.S. cents, compared with C$1.0018, or 99.82 cents, at Wednesday’s North American close.
Against the euro the Canadian currency at one point gained more than 1 percent to its strongest level since February 7, and was last trading around C$1.3355 to the euro.
National’s Spitz said the Canadian dollar would likely trade between C$1.01 and C$0.999 to the U.S. dollar in the short-term.
He saw the recent approval of CNOOC’s bid for Nexen prompting some Canadian dollar buying as Canadian shareholders convert their U.S. dollar-denominated windfall into their domestic currency.
The two-year bond was up 4 Canadian cents to yield 1.133 percent, while the benchmark 10-year bond rose 29 Canadian cents to yield 2.006 percent.
Reporting by Alastair Sharp; Editing by Chizu Nomiyama