CANADA FX DEBT-C$ fall muted as oil snaps losing streak

Thu Jan 8, 2015 9:57am EST
 
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* Canadian dollar at C$1.1830 or 84.53 U.S. cents
    * Bond prices mixed across the maturity curve

    By Solarina Ho
    TORONTO, Jan 8 (Reuters) - The Canadian dollar was
marginally weaker against its U.S. counterpart on Thursday as
oil prices stabilized following data that showed U.S. crude
stockpiles had fallen.
    Oil prices have tumbled more than 50 percent since June as
Saudi Arabia and other oil-producing countries have resisted 
production cuts despite excess supply and waning demand. Canada
is a major crude exporter, and the Canadian dollar has been
highly sensitive to the sharp price declines.
    "For the Canadian dollar, really, the oil price is the core
focus," said Camilla Sutton, chief currency strategist at
Scotiabank. "So when we're seeing today oil not having reached a
new low, and a fairly stable price from yesterday's close, it's
seeing CAD react in a very similar manner." 
    Sutton added, however, that the strength of the greenback
has been the dominant factor in the currency market.
    "All in all CAD's been pushed and pulled by market trends,"
she said. "There's still a lot of U.S. dollar strength as the
overarching theme for most currencies. Canada is just hovering
in between."
    The Canadian dollar, which had retreated more than
1.5 percent since the new year to 5-1/2 year lows, was at
C$1.1830 to the greenback, or 84.53 U.S. cents. That was
slightly weaker than Wednesday's finish of C$1.1820, or 84.60
U.S. cents.
    Investors were also awaiting employment figures for December
for the United States and Canada, which are due on Friday.
Forecasters polled by Reuters expected 15,000 new jobs in Canada
with the unemployment rate unchanged at 6.6 percent.
    Canadian government bond prices were mixed across the
maturity curve with longer-term maturities falling. The two-year
 fell 2.5 Canadian cents to yield 0.98 percent and the
benchmark 10-year declined 23 Canadian cents to
yield 1.681 percent.

 (Reporting by Solarina Ho; Editing by Peter Galloway; Editing
by Peter Galloway)