CANADA FX DEBT-C$ slips in quiet trading as US$ firms; China disappoints

Mon Aug 10, 2015 9:49am EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

* Canadian dollar at C$1.3145 or 76.07 U.S. cents
    * Bond prices mostly lower across the maturity curve

    TORONTO, Aug 10 (Reuters) - The Canadian dollar was modestly
softer against the greenback in relatively quiet trading on
Monday, as the U.S. dollar tested four-month highs against a
basket of currencies.
    This follows Friday's loonie retreat after U.S. and Canadian
labor reports for July that left the two country's divergent
monetary policy paths on track.
    The Canadian dollar also tracked some of the weakness by its
fellow commodity counterparts. The Australian and New Zealand
dollars, commodity-related currencies vulnerable to news out of
China, lost some 1 percent following the latest weak economic
data out of that country, among the world's biggest resource
consumers. 
        
    * At 9:30 a.m. ET (1330 GMT), the Canadian dollar 
was trading at C$1.3145 to the greenback, or 76.07 U.S. cents, a
touch weaker than the Bank of Canada's official close of
C$1.3133, or 76.14 U.S. cents.
    * The Canadian dollar has traded between C$1.312 and
C$1.3182 so far in the session.
    * There were no major Canadian or U.S. economic data
released on Monday. .
    * China is facing increasing pressure to further stimulate
is economy following disappointing data over the weekend that
showed producer prices in July, which had been sliding
continuously for more than three years, hit their lowest point
since late 2009, while exports, hurt by softer global demand and
a strong yuan policy, tumbled 8.3 percent last month.
 
    * The Canadian dollar is expected to trade between C$1.3115
and C$1.3185 against the U.S. dollar on Monday, according to RBC
Capital Markets.
    * Canadian government bond prices were mostly lower across
the maturity curve, with the two-year price down 2.5
Canadian cents to yield 0.451 percent and the benchmark 10-year
 falling 24 Canadian cents to yield 1.445 percent.
    * The Canada-U.S. two-year bond spread narrowed to -27.4
basis points, while the 10-year spread widened to -76.1 basis
points.

 (Reporting by Solarina Ho Editing by W Simon)