March 15, 2018 / 12:31 PM / 3 months ago

CANADA FX DEBT-C$ weakens with range-bound trade expected for now

    * Canadian dollar at C$1.2969, or 77.11 U.S. cents
    * Bond prices mixed across the maturity curve

    March 15 (Reuters) - The Canadian dollar weakened modestly
against the greenback on Thursday, with analysts expecting the
currency to be stuck in a range following dovish comments from
the central bank earlier this week.
    * At 8:12 a.m. EDT (1212 GMT), the Canadian dollar         
was trading down 0.1 percent at C$1.2969 to the greenback, or
77.11 U.S. cents.
    * The currency's strongest level of the session was
C$1.2946, while its weakest level was C$1.2979.
    * Investors were looking ahead to domestic reports on
consumer debt and home sales later in the morning.
    * An increase in the price of oil helped cap declines in the
loonie as crude followed global equity markets higher. U.S.
crude        prices were up 0.49 percent at $61.26 a barrel,
while Brent crude         was 0.39 percent higher at $65.14.
     
    * Still, analysts expect it will be difficult for the
Canadian dollar to make substantial gains in the short-term
after comments from the head of the central bank suggested
policymakers will take their time raising interest rates
further.             
    * The Canadian dollar "appears vulnerable to renewed
near-term weakness," analysts at Scotiabank wrote in a note,
though they expect to see strength into the spring and summer. 
    * Canadian government bond prices were mixed across the
maturity curve, with the two-year            down 0.5 Canadian
cent in price to yield 1.779 percent and the benchmark 10-year
            rising 4 Canadian cents to yield 2.156 percent.
    
    


 
 



    

 (Reporting by Leah Schnurr in Ottawa; Editing by Steve
Orlofsky)
  
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