CANADA FX DEBT-C$ ends virtually unchanged on risk-off mood

Tue Feb 14, 2012 5:06pm EST
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(Updates to close)

* C$ ends lower at C$0.9995 vs US$, or $1.0005

* Bond prices track U.S. Treasuries higher

By Claire Sibonney

TORONTO, Feb 14 (Reuters) - The Canadian dollar ended little changed against the U.S. currency on Tuesday, as mixed U.S. and European economic news, along with continued uncertainty over the Greek bailout, left markets in a cautious mood.

The currency erased most of its early losses however, after a Greek government source suggested the conservative party would lend its support to the country's tough austerity measures, easing fears of a debt default.

Earlier, broader risk appetite was hurt by data showing U.S. retail sales rose less than forecast in January as consumers cut back on car purchases and did less online shopping. ID:nCATEDE81T]

The U.S. data weighed on already fragile risk sentiment after Moody's put the United Kingdom's Aaa rating in jeopardy for the first time late Monday and warned it may cut France and Austria as well. Moody's also downgraded six euro-zone nations, including Spain and Italy.

Positive market reaction from German data suggesting that Europe's heavyweight economy is picking up pace and a successful Italian bond auction was also short-lived.   Continued...