(Adds trader comment, Bank of Canada survey, updates prices to
* Canadian dollar ends at C$1.3230 or 75.59 U.S. cents
* Bond prices higher across the maturity curve
By Alastair Sharp
TORONTO, Jan 9 The Canadian dollar ended little
changed against a weaker U.S. counterpart on Monday, with a Bank
of Canada business outlook survey helping it hold ground even as
prices for crude oil, a major Canadian export, tumbled.
The Canadian dollar settled at C$1.3230 to the
greenback, or 75.59 U.S. cents, barely stronger than the Bank of
Canada's official close on Friday of C$1.3232, or 75.57 U.S.
"I'm surprised that Canada's not weaker, or dollar-Canada's
not higher, given that crude's down more than 3 percent," said
David Bradley, director of foreign exchange trading at
Scotiabank, adding that volumes were light.
Crude extended losses to nearly 4 percent in post-settlement
trade on concern that record Iraqi crude exports and rising U.S.
output would undermine OPEC's efforts to curb global oversupply.
"I'd be more comfortable buying (U.S.) dollars at this point
than selling them because I think we're close to the bottom of
the range," Bradley said.
The Canadian currency hit its strongest in more than three
weeks on Friday following surprisingly strong domestic
employment and trade data, before pulling back to end barely
Canadian companies are more optimistic about future sales as
demand picks up and plan to boost investment and hiring, but
businesses are uncertain about potential U.S. protectionism and
signs of substantial labor market slack exist, the Bank of
Canada said on Monday.
The currency's strongest level of Monday's session was
C$1.3198, while its weakest was C$1.3278.
The loonie made a strong gain against the pound, which slid
after British Prime Minister Theresa May said she was not
interested in Britain keeping "bits" of its EU membership.
It fell against the safe-haven yen and the Australian and
New Zealand dollars, fellow commodity currencies.
Canadian government bond prices were higher across the
maturity curve, with the two-year price up 2.5
Canadian cents to yield 0.752 percent and the benchmark 10-year
rising 33 Canadian cents to yield 1.69 percent.
(Editing by Bernadette Baum and Andrew Hay)