CANADA FX DEBT-C$ tumbles to six-week low as data drives greenback higher

Tue May 26, 2015 9:37am EDT
 
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* Canadian dollar at C$1.2402 or 80.63 U.S. cents
    * Bond prices mostly higher across the maturity curve

    TORONTO, May 26 (Reuters) - The Canadian dollar slipped to
its weakest level against the greenback in six weeks on Tuesday
as oil prices fell and the U.S. dollar extended gains on upbeat
economic data.
    The U.S. dollar rallied to a one-month high against a basket
of currencies after a report showed a second-straight monthly
increase in U.S. business investment spending plans in April.
 
    That report kicked off a jam-packed calendar of U.S.
economic data this week that could have implications for the
U.S. Federal Reserve policy. In Canada, the Bank of Canada will
issue its latest interest rate decision on Wednesday, and
first-quarter economic growth data will be released on Friday.
    * At 9:14 a.m. EDT (1314 GMT), the Canadian dollar 
was trading at C$1.2402 to the greenback, or 80.63 U.S. cents,
nearly a cent weaker than the Bank of Canada's official close on
Monday of C$1.2313, or 81.21 U.S. cents.
    * The currency touched C$1.2416 at one point, a level not
seen since April 15. Its strongest level was C$1.2304, hit
overnight.
    * In the United States, non-defense capital goods orders
excluding aircraft, rose 1.0 percent last month after an
upwardly revised 1.5 percent increase in March. A 2.5 percent
drop in transportation equipment weighed on overall orders for
durable goods, which slipped 0.5 percent last month. 
    * Oil prices fell, pressured in part by the strong greenback
and by the possibility that U.S. shale oil producers could
increase drilling activity. U.S. crude prices were down
2.09 percent at $58.47, while Brent crude lost 1.71
percent to $64.4. 
    * Canadian government bond prices were mostly higher across
the maturity curve, with the two-year price up 1.5
Canadian cents to yield 0.666 percent and the benchmark 10-year
 rising 21 Canadian cents to yield 1.758 percent.
    * The Canada-U.S. two-year bond spread was 2.7 basis points,
while the 10-year spread was -43.2 basis points.

 (Reporting by Solarina Ho; Editing by Peter Galloway)