CANADA FX DEBT-C$ little changed vs greenback, at 1-wk high against euro

Thu Feb 14, 2013 9:39am EST
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

* C$ at C$1.0017 versus US$, or 99.83 U.S. cents
    * Gains vs euro as Germany, France shrank in Q4
    * Nexen deal approval seen prompting some C$ buying

    By Alastair Sharp
    TORONTO, Feb 14 (Reuters) - The Canadian dollar was little
changed against the U.S. currency on Thursday, but strengthened
to a one-week high against the euro after a string of weak gross
domestic product reports hurt the single currency.
    Both the German and French economies, the euro zone's
largest, shrank in the last three months of 2012, pushing the
region deeper into recession. 
    Japan, which has been eyeing a weaker currency to boost
exports, meanwhile posted a third straight quarterly GDP
    The Canadian currency moved in a tight range against the
greenback, compared to the sharp fluctuations in European
currencies and the Japanese yen after the weak GDP data.  
    "It's being overlooked in light of broader global macro and
data related issues pertaining to Japan and Eurozone GDP numbers
that missed expectations," said Jack Spitz, managing director of
foreign exchange at National Bank Financial.
    At 9:09 a.m. (1409 GMT) the Canadian dollar was
trading at C$1.0017 to the greenback, or 99.83 U.S. cents,
compared with C$1.0018, or 99.82 cents, at Wednesday's North
American close.
    Against the euro the Canadian currency at one
point gained more than 1 percent to its strongest level since
Feb. 7, and was last trading around C$1.3355 to the euro.
    National's Spitz said the Canadian dollar would likely trade
between C$1.01 and C$0.999 to the U.S. dollar in the short-term.
    He saw the recent approval of CNOOC's bid for Nexen
prompting some Canadian dollar buying as Canadian shareholders
convert their U.S. dollar-denominated windfall into their
domestic currency.
    The two-year bond was up 4 Canadian cents to
yield 1.133 percent, while the benchmark 10-year bond
 rose 29 Canadian cents to yield 2.006 percent.