CANADA FX DEBT-C$ little changed, softer commodities weigh

Fri Oct 12, 2012 11:03am EDT
 
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* C$ at $0.9796 versus the U.S. dollar, or $1.0208
    * Lower oil and metal prices a drag
    * Confined to range of just C$0.9768 to C$0.98

    By Alastair Sharp
    TORONTO, Oct 12 (Reuters) - The Canadian dollar traded
little changed against the U.S. currency on Friday, with weaker
commodity prices weighing on sentiment and traders looking for
indications North America is brushing off global economic
stumbles.
    Commodity prices and other currencies influenced by them
also struggled as traders awaited clarity on whether heavily
indebted Spain would request a bailout to shore up its finances.
A bailout request is widely seen as positive as it would remove
some uncertainty from financial markets. 
    The Canadian dollar received some support from news U.S.
consumer sentiment unexpectedly rose in October to its highest
level in five years as optimism about the overall economy
improved. 
    "Ultimately we need to see some signs that the North
American economy is holding up," said Jeremy Stretch, head of
foreign exchange strategy at CIBC World Markets in London.
    At 10:30 a.m. (1430 GMT), the Canadian currency was at
C$0.9796 versus the U.S. dollar, or $1.0208, down slightly from
Thursday's North American session close of C$0.9787 to the
greenback, or $1.0218.
    It moved in a narrow range of C$0.98 and C$0.9768 in the
session, and was on track to close out the week much where it
started it.
    The currency pair "has been trading range bound for the most
part, content with where it has been, (and) is looking for a
major catalyst for direction.  With no major headlines expected
today, trading could be subdued," Rahim Madhavji, president at  
Knightsbridge Foreign Exchange said in a note to clients, adding
that the currency could trade between C$0.9720 and C$0.9820
during the session. 
    Canadian government bond prices rose. The two-year bond
 added 3 Canadian cents to yield 1.137 percent, while
the benchmark 10-year bond gained 14 Canadian cents
to yield 1.793 percent.