CANADA FX DEBT-C$ snaps 4 days of gains ahead of GDP

Fri Mar 2, 2012 8:22am EST
 
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* C$ slips to C$0.9878 vs US$, or $1.0123

* C$ best performing major of the week

* Bond prices rise across the curve

* Canada Q4 GDP in focus; median call for 1.8 pct

By Claire Sibonney

TORONTO, March 2 (Reuters) - The Canadian dollar eased slightly against the U.S. dollar in quiet trade on Friday ahead of quarterly economic growth data, as investors took profits from a string of gains this week that saw Canada outperform all other major currencies.

The Canadian dollar has appreciated more than 2 U.S. cents against the greenback since Monday, from a low of C$1.0050 to a more than five-month high of C$0.9842 on Thursday, on the back of a huge cash injection by the European Central Bank, solid U.S. labor market data and elevated oil prices.

"A lot of clients have seen the improving U.S. economic data, they've seen oil prices moving a lot higher and I think the Canadian dollar just becomes a much more attractive place to invest," said Blake Jespersen, managing director of foreign exchange sales at BMO Capital Markets.

"I think sentiment has really changed this week towards the Canadian dollar, it's appreciated considerably against some of the major currencies, the yen, the euro. We're seeing a lot of money coming back into Canada."   Continued...