CANADA FX DEBT-C$ retreats to April lows as Greece hits crude prices

Mon Jul 6, 2015 9:07am EDT
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* Canadian dollar at C$1.2640 or 79.11 U.S. cents
    * Bond prices higher across the maturity curve

    TORONTO, July 6 (Reuters) - The Canadian dollar softened to
its weakest level since mid-April against its U.S. counterpart
on Monday, as a stronger greenback helped pushed oil prices down
more than 3 percent following the Greek referendum, which saw
more than 60 percent of voters say 'No' to conditions for a
rescue package.
     The U.S. dollar firmed against a basket of key currencies,
but overall currency market moves were subdued as market
participants held off making snap judgments on what's next in
the euro zone. 
    The price of crude, a key Canadian export, was also hit by
emergency measures out of China over the weekend meant to
prevent a stock market crash that could threaten the world's
second-largest economy. China stocks have plunged some 30
percent in the last three weeks in what was originally deemed a
market "correction." 
    * At 8:56 a.m. ET (1256 GMT), the Canadian dollar 
was trading at C$1.2640 to the greenback, or 79.11 U.S. cents, a
sharp retreat from the Bank of Canada's official close of
C$1.2560, or 79.62 U.S. cents, on Friday.
    * The currency's strongest level of the session was
C$1.2551, while its weakest level was C$1.2646.
    * The Bank of Canada's second-quarter Business Outlook
Survey is due at 10:30 a.m. This data set will be scrutinized by
market participants and will help guide expectations on the
central bank's monetary policy intentions.
    * Canadian Ivey PMI data for June is due at 10:00 a.m. EDT
    * U.S. crude prices were down 4.23 percent to $54.52,
while Brent crude lost 2.22 percent to $58.98. A strong
U.S. dollar tends to pressure commodities as it makes them more
expensive for holders of other currencies. 
    * The Canadian dollar, which was lower against most of its
key currency counterparts, is expected to trade between C$1.2590
and C$1.2660 against the U.S. dollar on Monday, according to
National Bank Financial.
    * Canadian government bond prices were higher across the
maturity curve, with the two-year price up 6 Canadian
cents to yield 0.452 percent and the benchmark 10-year
 rising 46 Canadian cents to yield 1.65 percent.
    * The Canada-U.S. two-year bond spread was -14.5 basis
points, while the 10-year spread was -64.9 basis points.

 (Reporting by Solarina Ho; Editing by Meredith Mazzilli)