CANADA FX DEBT-C$ weaker on U.S. data, euro zone worries

Wed Jun 13, 2012 4:55pm EDT
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* Weakens to C$1.0292, or 97.16 U.S. cents
    * U.S. retail sales, producer price data weighs on sentiment
    * Bond prices mixed

    By Allison Martell	
    TORONTO, June 13 (Reuters) - Canada's dollar weakened
against the greenback and other major currencies on Wednesday,
hurt by soft U.S. economic data and investor fears about the
euro zone debt crisis ahead of Sunday's election in Greece.	
    The Canadian currency mirrored losses in global stocks and
commodities, which were also hurt by the uncertainty about
whether Greece will remain in the euro zone after the election.
    "If you're looking to take off risk, you have to slowly take
it off. You don't want to wait until Friday," said Adam Button,
currency analyst at ForexLive in Montreal.	
    "The crisis in Europe is clearly not over, regardless of the
outcome in Greece, so the market is just looking to pare back
    The Canadian dollar closed at C$1.0292, or 97.16 U.S. cents,
weaker than Tuesday's close at C$1.0267 to the U.S. dollar, or
97.40 U.S. cents. It lagged 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
    "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."	
    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. 	
    Button also noted that the Canadian dollar has been
unusually correlated with Standard & Poor's 500 Index,
which closed down 0.7 percent. 	
    David Bradley, a director of foreign exchange trading at
Scotiabank, said trading was fairly quiet, and noted that volume
has been down in general.	
    "The market seems pretty complacent trading off equities
these days," he said.	
    Global markets are expected to be choppy ahead of the Greek
vote, and on fears that Spain's financing problems may spread to
    Canadian bond prices were mixed. Canada's two-year bond
 fell 4 Canadian cents to yield 1.041 percent, while
the benchmark 10-year bond rose 23 Canadian cents,
yielding 1.778 percent.