January 24, 2011 / 1:28 PM / 9 years ago

CANADA FX DEBT-Canadian dollar flat on lackluster sentiment

 * C$ around C$0.9952 to U.S. dollar
 * Bonds mixed across curve
 By Claire Sibonney
 TORONTO, Jan 24 (Reuters) - The Canadian dollar was little
changed against its U.S. counterpart on Monday, lacking
direction from its usual drivers as U.S. equity futures were
flat and commodity prices gave mixed performances.
 World shares were slightly lower, weighed down by European
and emerging market stocks, while U.S. crude oil futures
slipped, but copper was higher on the day.
 At 8:06 a.m. (1306 GMT), the currency CAD=D4 was at
C$0.9952 to the U.S. dollar, or $1.0048, up very slightly from
Friday's finish at C$0.9954 to the U.S. dollar, or $1.0046.
 Scotia Capital currency strategist Sacha Tihanyi said the
day's range for the currency was expected to hold between
C$0.99 to the U.S. dollar and parity.
 He noted that the Canadian dollar was still trading in the
weaker end of its three-week range of C$0.9838 to C$1.0034
after last week's cautious stance by the Bank of Canada took
markets by surprise.
 Looking ahead, the domestic highlight of the week is
Tuesday's December inflation data.
 "The markets seemed to be positioned for a little bit more
hawkishness than they received so that will be a key data
point," said Tiyanhi. "We had the nice retail sales out on
Friday last week so that kind of gave us a bit of a pause but I
think if you see weakness in inflation data, it could certainly
negatively impact CAD."
 Canadian bond prices were also mixed, lacking significant
direction in early trade. The two-year bond CA2YT=RR was up 3
Canadian cents to yield 1.732 percent, while the 10-year bond
CA10YT=RR added 4 Canadian cents to yield 3.322 percent.
  (Reporting by Claire Sibonney, Editing by Chizu Nomiyama)

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