CANADA FX DEBT-C$ little changed; soft U.S. data weighs

Wed Jun 13, 2012 1:44pm EDT
 
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* Firms slightly to $1.0260, or 97.47 U.S. cents
    * U.S. retail sales, producer price data weighs on sentiment
    * Bond prices mostly lower

    By Allison Martell	
    TORONTO, June 13 (Reuters) - Canada's dollar was little
changed against its U.S. counterpart on Wednesday, with soft
U.S. economic data weighing on sentiment, but investors were
largely focused on Sunday's election in Greece.	
    Data released on Wednesday showed that retail sales in the
United States, Canada's largest export market, fell for a second
straight month in May, and wholesale prices dropped by the most
in three years. 	
    The Canadian dollar traded in a narrow range against the
greenback after the data but was weaker against most other major
currencies, including the yen, euro and Australian dollar.	
    "We're not getting much personality out of the Canadian
dollar, and it's lagging the broader market," said Jack Spitz,
managing director of foreign exchange at National Bank
Financial.	
    "I would attribute some of it to the weaker economic data
that came out of the States earlier today. Canada, being looked
at as a North American proxy, has faded along with the U.S.
dollar today."	
    	
    EYE ON GREEK ELECTION    	
    At 1:23 p.m. (1723 GMT) the Canadian dollar was at C$1.0260,
or 97.47 U.S. cents, compared with Tuesday's close at C$1.0267
to the U.S. dollar, or 97.40 U.S. cents. Earlier it had weakened
to C$1.0287, or 97.21 U.S. cents.	
    David Bradley, a director of foreign exchange trading at
Scotiabank, said trading was fairly quiet, and noted that volume
has been down in general. He saw the Canadian dollar moving
within in a tight range on Wednesday as investors eyed the Greek
election.	
    "The market seems pretty complacent trading off equities
these days," he said.	
    Toronto's main stock index reversed early losses with a
modest rally as mining and financial gains offset energy losses
spurred by the soft U.S. data.  	
    Global markets are expected to be choppy ahead of the Greek
vote, and on fears that Spain's financing problems may spread to
Italy. 	
    Still, Spitz saw the potential for news out of Europe to
support the Canadian dollar, particularly the possibility of
some kind of resolution in Greece coming out of the election.	
    "Europe slowly seems to be moving itself towards a more
positive underlying tone," he said.	
    "We would see dollar/Canada at C$1.03 or above C$1.03 as an
opportunity to sell (U.S. dollars)."	
    Canadian bonds prices were mostly lower. Canada's two-year
bond fell 6 Canadian cent to yield 1.048 percent,
while the benchmark 10-year bond fell 5 Canadian
cents, yielding 1.808 percent.