CANADA FX DEBT-C$ softens on Europe fears, N.American data
* C$ softer at C$1.0137 vs US$, or 98.65 U.S. cents * Bond prices little changed across the curve TORONTO, May 17 (Reuters) - Canada's dollar softened against the U.S. dollar on Thursday after uninspiring North American data failed to offset the deepening turmoil in Greece and fears of contagion spreading to other stressed euro zone economies. Worries about Spain's banks also resurfaced after a report that customers at Bankia had withdrawn more than 1 billion euros from their accounts in the past week, though the Spanish government said there had been no exit of deposits from the lender. The report followed suggestions that customers of Greek banks were moving funds in anticipation of the country's exit from the euro, adding to anxiety among investors about the lack of a firm plan to deal with the region's worsening crisis. "Negative risk-appetite in the market as concerns over Europe and Greece continue to be forefront in market sights here," said Matt Perrier, director of foreign exchange sales at BMO Capital Markets. At 9:07 a.m. (1305 GMT), the Canadian dollar stood at C$1.0137 versus the U.S. dollar, or 98.65 U.S. cents, slightly weaker than Wednesday's North American session close at C$1.0127 versus the U.S. dollar, or 98.75 U.S. cents. Perrier put near-term Canadian dollar support around C$1.0180 and resistance around C$1.0023. Earlier, the currency had a knee-jerk negative reaction to a mixed bag of North American economic data. Foreign investors reduced their holdings of Canadian securities for the second time in three months in March, largely by selling off Canadian treasury bills. Meanwhile U.S. jobless claims held steady at 370,000, slightly disappointing market expectations. Slightly higher than expected domestic wholesale trade figures on the back of strength in the motor vehicles and parts subsector did little to encourage investors. Canadian bond prices were little changed across the curve. The two-year government bond edged up 2 Canadian cents to yield 1.289 percent, while Canada's 10-year bond was down 4 Canadian cents to yield 1.927 percent.
© Thomson Reuters 2016 All rights reserved.