CANADA FX DEBT-C$ firms in range-bound trading as Greece commands attention

Thu Jun 25, 2015 4:58pm EDT
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(Adds comments, details, closing figures)
    * Canadian dollar at C$1.2323 or 81.15 U.S. cents
    * Bond prices mostly lower across the maturity curve

    By Solarina Ho
    TORONTO, June 25 (Reuters) - The Canadian dollar firmed
against the greenback on Thursday, recouping the previous
session's losses, but its move was limited by this week's lack
of domestic economic data and by the market's focus on talks to
reach a Greek debt deal.
    Markets were anxiously awaiting news on whether debt-laden
Greece and its creditors will reach an 11th-hour deal to stave
off default. 
    "Everybody's just watching the Greek headlines, whether you
like it or not," said Benjamin Reitzes, senior economist and
foreign exchange strategist at BMO Capital Markets.
    "It's going to be tough for markets to really solidly a move
in any direction. There's range-bound action for a lot of
currencies. It's just tough to get a definitive direction
because we don't know what the consequences might be." 
    The Canadian dollar closed at C$1.2323 to the
greenback, or 81.15 U.S. cents, stronger than the Bank of
Canada's official close of C$1.24, or 80.65 U.S. cents, on
    It traded between C$1.2315 and $1.2399 against the U.S.
dollar during the session.
    Data on Thursday showed U.S. consumer spending recorded its
largest increase in nearly six years in May, the latest evidence
that U.S. economic growth has been picking up steam in the
second quarter after a tough first quarter. 
    The Canadian currency could experience more volatility next
week, with less liquidity expected due to the Canada Day holiday
on Wednesday and the U.S. Fourth of July holiday on Friday.
Canadian April GDP data is due on Tuesday and U.S. employment
figures on Thursday.
    Canadian government bond prices were mostly lower across the
maturity curve, with the two-year price down 4
Canadian cents to yield 0.621 percent and the benchmark 10-year
 falling 36 Canadian cents to yield 1.814 percent.
    The Canada-U.S. two-year bond spread was -6.7 basis points,
while the 10-year spread was -59.3 basis points.

 (Reporting by Solarina Ho; Editing by Peter Galloway)