CANADA FX DEBT-C$ stable in quiet trading; holds near C$1.09 vs US$

Wed May 14, 2014 9:35am EDT
 
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* Canadian dollar at C$1.0902 vs US$, or 91.73 U.S. cents
    * Bond prices mostly rise across the maturity curve

    By Solarina Ho
    TORONTO, May 14 (Reuters) - The Canadian dollar was little
changed against the greenback on Wednesday, as a dearth of
market-moving domestic economic data left the currency searching
for direction.
    Canadian home prices rose in April and the pace of 12-month
home price appreciation accelerated slightly, the
Teranet-National Bank Composite House Price Index showed on
Wednesday. 
    Overseas, foreign exchange markets were focused on the Bank
of England, which quashed expectations of near-term monetary
tightening in its quarterly inflation report on Wednesday.
 
    Chinese data this week have been weaker than expected, but
speculation of a potential stimulus was balancing the negative
side of the data, said Camilla Sutton, chief currency strategist
at Scotiabank.
    "In terms of Canada itself, it's moving fairly in line with
U.S.-Canada two-year spreads, which suggests the focus is still
very much fundamentally driven," said Sutton.
    At 9:21 a.m. (1321 GMT), the Canadian dollar was
trading at C$1.0907 to the U.S. dollar, or 91.64 U.S. cents,
marginally firmer than Tuesday's close of C$1.0910, or 91.66
U.S. cents.
    "Canada's just left as a mid-performer, very flat. In
USD/CAD terms, it's very comfortable trading on either side of
C$1.10," said Sutton, adding that the currency would likely
trade within 30 basis points of its current level for the
session.
    Canadian government bond prices were mostly higher across
the maturity curve, with the two-year rising 1.7
Canadian cents to yield 1.054 percent and the benchmark 10-year
 gained 39 Canadian cents to yield 2.315 percent.

 (Reporting by Solarina Ho; Editing by Nick Zieminski)