* Euro steady below Monday's 5-month high
* Pauses after rallying on relief over Sunday's French vote
* Canadian dlr hit as US announces new duties on Canadian
(Updates prices, adds comments)
By Masayuki Kitano
SINGAPORE, April 25 The euro steadied on
Tuesday, pausing after a rally sparked by the first-round
results of the French presidential election, while the Canadian
dollar fell after the U.S. slapped duties on Canadian softwood
The euro last traded at $1.0866, 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 presidential
Polls show Macron defeating anti-EU, anti-euro nationalist
Marine Le Pen in a runoff vote due to take place next month.
The euro's sharp bounce on Monday was partly due to the
triggering of stop-loss buying at $1.09, said Tan Teck Leng,
forex analyst for UBS Wealth Management in Singapore.
After that rally, lingering caution over the risk of a
surprise win by Le Pen in the runoff vote will probably limit
the euro's gains for now, he said.
"Our view on the euro/dollar is that between now and May 7,
you'll probably be trading between $1.08 and $1.10," Tan 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 after U.S.
Commerce Secretary Wilbur Ross said his agency will impose new
anti-subsidy duties averaging 20 percent on Canadian softwood
The loonie slipped to C$1.3560 per U.S. dollar at one point,
its lowest level since late December when it sank to C$1.3598.
The U.S. dollar rose 0.3 percent to 110.08 yen, as
the safe haven yen edged lower.
There was little market reaction after media reports said
North Korea put on a massive live-fire drill on Tuesday.
Market participants have been worried that North Korea could
conduct its sixth nuclear test, or another long-range missile
launch, to coincide with the 85th anniversary of the foundation
of its army on Tuesday.
Analysts said there was some relief for now, over the lack
of such action by North Korea.
They added, however, that concerns over geopolitical risks
were likely to persist, limiting the yen's declines and
tempering the dollar's gains against the Japanese currency.
"For the dollar to make a try for 112 yen, you'd like to see
some type of positive news out of the United States and an
easing in North Korea related tensions," said Satoshi Okagawa,
senior global markets analyst for Sumitomo Mitsui Banking
Corporation in Singapore.
One potential negative against the dollar is the risk of a
U.S. government shutdown, Okagawa said.
President Donald Trump indicated an openness on Monday to
delaying his push to secure funds for his promised border wall
with Mexico, potentially eliminating a sticking point as
lawmakers worked to avoid a looming shutdown of the federal
Trump is facing a Friday deadline for Congress to pass a
spending bill funding the government through September or risk
marking his 100th day in office on Saturday with a government
(Reporting by Masayuki Kitano; Additional reporting by Hideyuki
Sano in Tokyo; Editing by Shri Navaratnam and Kim Coghill)