January 25, 2010 / 2:25 PM / 10 years ago

CANADA FX DEBT-C$ sags as investor confidence fragile

 * Falls to C$1.0594 to the US$, or 94.39 US cents
 * Currency flat as investors in "wait and see mode"
 * Bond prices slightly softer across curve
 By Jennifer Kwan
 TORONTO, Jan 25 (Reuters) - The Canadian dollar sagged
slightly against the U.S. currency on Monday morning but moves
were largely muted as investors were unwilling to make major
bets ahead of key events this week.
 Investors -- still slightly shaken by concerns last week
over a White House plan to limit risk-taking by U.S. banks and
China's monetary policy stance -- were slightly nervous ahead
of a rate decision by the U.S. Federal Reserve's Federal Open
Market Committee announces decision on Wednesday.
 Markets also were awaiting a Senate vote on whether
embattled Fed Chairman Ben Bernanke would win support for a
second term. Bernanke's term ends Jan. 31. [ID:nN24141266]
 "Things seem to be a little risk-off at the moment," said
Steve Butler, director of foreign exchange trading at Scotia
 "People are right now in a wait and see mode and that's why
things are so flat."
 At 9:04 a.m. (1404 GMT), the Canadian dollar was at
C$1.0594 to the U.S. dollar, or 94.39 U.S. cents, slightly
lower than C$1.0581 to the U.S. dollar, or 94.51 U.S. cents, at
Friday's finish.
 Elsewhere, the euro rose against the dollar and the yen on
Monday as an offer of five-year Greek sovereign bonds met
strong demand. [FRX/]
 The price of oil, a key Canadian export, were flat at
around $74.54 a barrel. [O/R] Oil often exerts a strong
influence on the Canadian dollar.
 Government bond prices were flat to slightly lower,
mirroring moves in the U.S. Treasuries where debt prices fell
as U.S. stock index futures pointed to a higher open. [US/]
 (Editing by Theodore d'Afflisio)

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