April 29, 2011 / 12:31 PM / 9 years ago

CANADA FX-C$ up slightly but election uncertainty weighs

 * C$ rises to C$0.9491 to the U.S. dollar, or $1.0536,
 * Markets eye rising NDP in election campaign
 By Claire Sibonney
 TORONTO, April 29 (Reuters) -  The Canadian dollar firmed
slightly against a broadly weakened U.S. dollar on Friday
morning but stayed locked in a tight range over an uncertain
political climate heading into the May 2 election.
 The federal election has created headwinds for the currency
in recent days as support for the left-leaning New Democrats
unexpectedly surged.
 Canada's ruling Conservative Party is still leading the
campaign but only by a few points, according to a poll released
on Friday. [ID:nN29143540]
 Investors were also awaiting monthly growth figures due at
8:30 a.m. (1230 GMT), but the focus is clearly on Monday's
election, and overseas trading was quiet with volumes crimped
by a holiday in Britain for the royal wedding.
 "The only thing I think is going to be market moving is the
election on Monday night. I think the NDP can play a spoiler
role in the Canadian dollar rally," said Firas Askari, head of
foreign exchange trading at BMO Capital Markets.
 "If they are the official opposition, then I think people
will take some Canadian dollar bets off the table."
 At 8:11 a.m. (1211 GMT), the Canadian dollar CAD=D4 stood
at C$0.9491 to the U.S. dollar, or $1.0536, up from Thursday's
North American finished at C$0.9510 to the U.S. dollar, or
 The U.S. dollar stayed under heavy pressure on expectations
U.S. monetary policy will stay loose, while stocks paused for
breath and a strong commodities rally tailed off. [MKTS/GLOB]
 However, Askari said he didn't expect the Canadian dollar
to meaningfully join in the U.S. dollar selloff -- and break
through C$0.9450 -- until the election is over.
  (Editing by Padraic Cassidy)

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