CANADA FX DEBT-C$ lifted by Greek austerity vote

Mon Feb 13, 2012 9:24am EST
 
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 * C$ strengthens to C$0.9989 vs US$, or $1.0011
 * Bond prices edge lower on risk-on bid
 By Claire Sibonney	
 TORONTO, Feb 13 (Reuters) - Canada's dollar climbed
against the U.S. dollar on Monday morning, helped by
investor relief after Greek politicians passed tough austerity
measures crucial to securing a second bailout and avoiding a
chaotic default. 	
 The risk-on trade tracked a broader move by commodities,
equities and the euro but gains looked fragile with several
issues still to be resolved before the shadow of a messy debt
default is lifted. 	
 "It's been a really consistent story since the start of the
year. We've had very few risk-off days ... given what's
happening in other markets it's primarily just the risk-on trade
itself," said Mark Chandler, head of fixed income and currency
strategy at RBC Capital Markets.	
 Greece must still detail how a further 325 million euros of
spending cuts will be reached, and give binding assurances the
full plan will be implemented before euro zone finance ministers
meet on Wednesday. 	
 At 9:15 a.m. (1415 GMT), the Canadian currency 
stood at C$0.9989 versus the U.S. dollar, or $1.0011 U.S., up
from Friday's North American session close of C$1.0028 to the
U.S. dollar, or 99.72 U.S. cents, which marked its biggest
weekly drop this year.	
 RBC Capital Markets expects today's range to fall on either
side of parity between C$0.9950-C$1.0005.	
 "Really, in terms of what's driving the Canadian dollar,
there's not a heck of a lot domestically behind it."	
 Canadian bond prices retreated alongside U.S. Treasuries.
Canada's two-year bond fell 4 Canadian cents to yield
1.090 percent. The 10-year bond drifted down 17
Canadian cents to yield 2.072 percent. 	
	
 (Reporting by Claire Sibonney; Editing by James Dalgleish)