CANADA FX DEBT-C$ lifted by German data, oil prices

Thu Feb 23, 2012 8:24am EST
 
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* C$ up at C$0.9972 vs US$, or $1.0028

* German data boosts global sentiment

* Bonds prices ease across curve

By Claire Sibonney

TORONTO, Feb 23 (Reuters) - The Canadian dollar strengthened back through parity against the U.S. dollar on Thursday as better-than-expected German data eased concerns about a bleak euro zone economic outlook and a rally in oil prices fueled commodity currencies.

However, markets remained wary about the negative impact of higher oil prices and potential problems implementing Greece's bailout. Broader concern over the economy was also borne out by European Commission forecasts showing the euro zone would contract this year.

"The European developments themselves speak to a positive and a negative reaction in the currency space. We've seen a better than expected German Ifo, which gave the euro a bid to a new calendar high and some of that optimism pulled back on the downsized forecasts coming from the EU," said Jack Spitz, managing director of foreign exchange at National Bank Financial.

"The fundamentals continue to speak to an erratic global environment."

At 8:04 a.m. (1204 GMT), the Canadian dollar stood at C$0.9972 against its U.S. counterpart, or $1.0028, up from Wednesday's North American session close at C$1.0004 versus the U.S. dollar, or 99.96 U.S. cents.   Continued...