CANADA FX DEBT-C$ weakens with equity markets after U.S. data

Wed Jun 13, 2012 9:50am EDT
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* Weakens to C$1.0283, or 97.25 U.S. cents
    * Slides with North American equities
    * Bond prices mixed

    By Allison Martell	
    TORONTO, June 13 (Reuters) - Canada's dollar weakened
against its U.S. counterpart on Wednesday, following North
American equity markets as they slid on worries about the euro
zone debt crisis and disappointing U.S. data.	
    U.S. retail sales fell for a second straight month and
producer prices dropped more sharply than expected, helping to
send Wall Street and Toronto shares lower.  	
    "The market seems pretty complacent trading off equities
these days," said David Bradley, a director of foreign exchange
trading at Scotiabank.	
    At about 9:30 a.m. (1330 GMT) the Canadian dollar was at
C$1.0283, or 97.25 U.S. cents, compared with Tuesday's close at
C$1.0267 to the U.S. dollar, or 97.40 U.S. cents.	
    Bradley said trading was fairly quiet, and noted that volume
has been down in general. He saw the Canadian dollar trading in
a tight range on Wednesday as investors looked ahead to this
weekend's Greek election.	
    He also saw Canada's currency trading between C$1.02 and
C$1.04 for some time, past the end of this week, barring big
moves in the euro.	
    "We were stuck in a 200-point range for three and a half,
four months earlier on this year," he said. "I wouldn't be
surprised if, knowing the Canadian dollar, we just get pushed
back into this range trading scenario."	
    Canadian bonds prices were mixed. Canada's two-year bond
 fell 1 Canadian cent to yield 1.027 percent, while
the benchmark 10-year bond rose 20 Canadian cents,
yielding 1.781 percent.