CANADA FX DEBT-C$ slips as crude softens, greenback rebounds
* Canadian dollar at C$1.2297, or 81.32 U.S. cents * Bond prices higher across the maturity curve TORONTO, June 11 (Reuters) - The Canadian dollar softened against the greenback on Thursday, with a stronger U.S. currency and a cloudy economic forecast from the World Bank dampening the price of oil. The U.S. dollar recouped some of Wednesday's losses against a basket of currencies as optimistic investors positioned themselves ahead of U.S. retail sales data, which came in slightly better than expected. Weekly U.S. jobless claims ticked up more than expected, however, but remained at a healthy level. Market participants have been focused on U.S. economic data to help guide expectations on when the Federal Reserve might resume raising interest rates. Recent numbers have suggested that a 2015 rate hike is likely, with many eyeing September. Overseas, the New Zealand dollar sank to a five-year low against the greenback after the Reserve Bank of New Zealand surprised markets with an interest rate cut and suggested more easing could follow. * At around 9:28 a.m. EDT (1328 GMT), the Canadian dollar was at C$1.2297 to the greenback, or 81.32 U.S. cents, weaker than Wednesday's close of C$1.2262, or 81.55 U.S. cents. * The currency has traded between C$1.2253 and C$1.2355 so far in the session. * In Canada, industrial capacity use dropped to 82.7 percent in the first quarter from 83.5 percent the previous quarter, pulled lower in part by weaker manufacturing. * New home prices in Canada edged up 0.1 percent in April from March, in line with expectations, despite a second consecutive month of declines in Calgary, which has been hurt by the struggling energy sector. * U.S. crude was down 60 cents at $60.83 a barrel, while Brent crude oil for July shed 51 cents to trade at $65.19 a barrel. The World Bank forecast in its Global Economic Prospects report that the global economy would expand by 2.8 percent this year, below its 3 percent January outlook. * Canadian government bond prices were higher across the maturity curve, with the two-year rising 3.6 Canadian cents to yield 0.684 percent and the benchmark 10-year gaining 41 Canadian cents to yield 1.862 percent. (Reporting by Solarina Ho; Editing by Meredith Mazzilli)
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