CANADA FX DEBT-C$ pressured by rebounding greenback, weaker oil prices

Fri May 1, 2015 5:00pm EDT
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(Updates with strategist's comment, details, closing figures)
    * Canadian dollar at C$1.2157 or 82.26 U.S. cents
    * Bond prices mostly lower across the maturity curve

    By Solarina Ho
    TORONTO, May 1 (Reuters) - The Canadian dollar stumbled on
Friday as the greenback bounced back from a dismal April on
signs that a run of uninspired U.S. economic data for the first
quarter may be over.
    U.S. economic figures on Friday were mixed, but investors
appeared to be trading off a more optimistic-than-expected tone
in the U.S. Federal Reserve's policy statement on Wednesday.
    "It's more of U.S. dollar-positive story today," said David
Tulk, chief Canada macro strategist at TD Securities. "You think
of the catalyst, and the economic data was generally soft and
disappointing ... you have to maybe look at the move today in
the wider context of the week."
    Weaker prices for crude, a key Canadian export, compounded
the Canadian dollar weakness. Oil, which had been trading near
their highs for the year, came under pressure from the stronger
greenback and by Iraq's statement that its crude exports hit a
record in April. 
    U.S. crude crude was down 0.7 percent at $59.20,
while Brent lost 0.4 percent to $66.50.
    The Canadian dollar, which was underperforming many
of its counterparts, finished the session at C$1.2157 to the
greenback, or 82.26 U.S. cents. This was nearly a cent weaker
than the Bank of Canada's official close of C$1.2064, or 82.89
U.S. cents, on Thursday.
    The loonie, which traded between C$1.2064 and C$1.2205
during the session, was little changed for the week,
strengthening less than 0.1 percent. On Wednesday, it had
touched it strongest level since the Bank of Canada's surprise
interest rate cut in January.
    The U.S. dollar index, which measures the greenback
against a basket of currencies, rebounded on Friday after
slumping to its worst month in four years in April.
    Canadian government bond prices were mostly lower across the
maturity curve, with the two-year price down 6.5
Canadian cents to yield 0.712 percent and the benchmark 10-year
 falling 73 Canadian cents to yield 1.658 percent.
    The Canada-U.S. two-year bond spread was 11.3 basis points,
while the 10-year spread was -45.4 basis points.

 (Reporting by Solarina Ho; Editing by Chris Reese; and Peter