* Euro steady below Monday's 5-month high
* Pauses after rallying on relief over Sunday's French vote
* Canadian dollar hits lowest in about 4 months
* U.S. announces new duties on Canadian lumber
SINGAPORE, April 25 The euro edged lower on
Tuesday, catching its breath after a relief rally sparked by the
first round results of the French election, while the Canadian
dollar fell on news of U.S. duties on Canadian softwood lumber.
The euro slipped 0.1 percent to $1.0860, off Monday's
peak of around $1.0940, its highest level since Nov. 10, after
centrist Emmanuel Macron won the first round of the French
Polls show Macron defeating anti-EU, anti-euro nationalist
Marine Le Pen in the runoff vote due to take place next month.
The euro is likely to show resilience given the low chances
of Le Pen winning the second round vote on May 7, said Satoshi
Okagawa, senior global markets analyst at Sumitomo Mitsui
Banking Corporation in Singapore.
However, the near term gains will be limited in the wake of
the common currency's short-covering rally, he added.
"It will be hard to aggressively buy the euro to levels
above $1.10," Okagawa said.
Opinion polls indicate that the business-friendly Macron,
who has never held elected office, will take at least 61 percent
of the vote against Le Pen after two defeated rivals pledged to
back him to thwart her eurosceptic, anti-immigrant platform.
The Canadian dollar fell 0.4 percent in early Asian
trade after U.S. Commerce Secretary Wilbur Ross said his agency
will impose new anti-subsidy duties averaging 20 percent on
Canadian softwood lumber imports.
The loonie slipped to C$1.3559 per U.S. dollar at one point,
its lowest level since late December when it sank to C$1.3598.
The greenback edged up 0.1 percent to 109.89 yen, but
remained below Monday's high of 110.64 yen, its strongest level
since April 11.
Analysts say the yen, which often rises in times of market
turmoil, could rally again if worries about geopolitical
tensions over North Korea increase.
U.S. President Donald Trump said on Monday the U.N. Security
Council must be prepared to impose new sanctions on North Korea
as concerns mount that it may test a sixth nuclear bomb as early
Nonetheless, the dollar's upside against the yen may be
limited in the near term, said Shinichiro Kadota, senior FX
strategist for Barclays in Tokyo.
"U.S. economic data has been a bit on the weak side recently
and U.S. bond yields have had a hard time rising. So it looks
like the dollar will be pretty heavy on the topside," Kadota
(Reporting by Masayuki Kitano; Additional reporting by Hideyuki
Sano in Tokyo; Editing by Shri Navaratnam)