CANADA FX DEBT-C$ finds modest strength ahead of data, Fed

Mon Aug 27, 2012 9:40am EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

* C$ at C$0.9906 vs US$, or $1.0095
    * Bond prices mixed
    * C$ expected to trade between C$0.9895 and C$0.9930
    * Fed meeting, Canadian GDP in focus this week

    By Solarina Ho
    TORONTO, Aug 27 (Reuters) - The Canadian dollar drifted
higher against its U.S. counterpart on Monday, with volumes
light, little news to provide firm direction, and traders
focused on major events later this week.
    U.S. stocks opened slightly higher, which helped overall
risk sentiment, providing a modest boost to the currency.
    "Generally speaking, the theme for the Canadian dollar has
always been and will continue to be the risk-on and risk-off
theme and with little activity overnight...allowed at least some
of the negative sentiment to be subdued for the day," said 
Mazen Issa, macro strategist with TD Securities.
    At 9:37 a.m. (1337 GMT) the Canadian dollar traded
at C$0.9906 versus the U.S. dollar, or $1.0095, firmer than
Friday's North American close at C$0.9916, or $1.0085.
    Volumes, already seasonally light, were particularly thin on
Monday due to the Summer Bank holiday in Britain.
    For the day, the currency was seen trading between C$0.9895 
and C$0.9930, said Issa.
    All eyes will be on U.S. Federal Reserve Chairman Ben
Bernanke and other central bank leaders when they meet in
Jackson Hole, Wyoming on Friday for a key meeting that could
hint at the Fed's monetary policy to come.
    In a letter obtained by Reuters on Friday, Bernanke told a
congressional oversight panel the Fed has room to deliver
additional monetary stimulus to boost the U.S. economy.
 
    Also in focus will be Friday's Canadian gross domestic
product figures, which is expected to soft.
    "In Canada, domestic demand (has been) shouldering the
burden for the economic growth in the country and that expected
to remain the case," said Issa.
    Canadian bond prices were mixed, with the two-year bond
 down half a Canadian cents to yield 1.155 percent and
the benchmark 10-year bond up 22 Canadian cent to
yield 1.810 percent.