CANADA FX DEBT-C$ weakens; retail sales, policymakers in focus

Reuters

* Canadian dollar at C$1.0471 vs U.S. dollar, or 95.50 U.S.

cents

* Bond prices lower across the maturity curve

By Leah Schnurr

TORONTO, Nov 19 (Reuters) - The Canadian dollar weakened

against its U.S. counterpart on Tuesday as investors positioned

themselves ahead of retail sales data due this week from both

the United States and Canada.

With investors also awaiting commentary from central bank

policymakers on both sides of the border, the loonie drifted

away from the one-week high it hit on Monday.

"Canada is lacking some momentum or a boost here, so it's

come off those recent highs," said Don Mikolich, executive

director of foreign exchange sales at CIBC World Markets in

Toronto.

Federal Reserve Chairman Ben Bernanke was due to speak later

on Tuesday, while Bank of Canada Governor Stephen Poloz will be

giving parliamentary testimony on Wednesday, along with Senior

Deputy Governor Tiff Macklem.

On the economic front, U.S. retail sales data for October

are also due on Wednesday and are expected to show a 0.1 percent

rise, according to economists polled by Reuters. Canadian retail

sales for September, expected on Friday, is forecast to show a

0.3 percent rise.

"What you're seeing is a little bit of repositioning ...

with everyone looking at growth, retail sales would be the

interesting (economic point), but even then, it's going to be

U.S. retail sales that will grab the headline," said Brad

Schruder, director of foreign exchange at BMO Capital Markets.

Inflation data on both sides of the border are also released

this week, but Schruder said inflation, which has seen little

movement, has "almost become a tertiary figure."

The Canadian dollar ended the North American

session at C$1.0471 versus the greenback, or 95.50 U.S. cents,

weaker than Monday's close at C$1.0432, or 95.86 U.S. cents.

The loonie should see support around C$1.0410, but unless

there are some positive catalysts from both Canada and the

United States, the currency is likely where it should be for

now, said Mikolich.

Canadian bond yields were lower across the maturity curve,

with the two-year bond down 4 Canadian cents to yield

1.125 percent, while the benchmark 10-year bond fell

33 Canadian cents to yield 2.568 percent.

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