CANADA FX DEBT-C$ slips after Bank of Canada sparked rally

Tue Apr 3, 2012 8:14am EDT
 
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* C$0.9929 vs US$, or $1.0072
    * Bonds edge higher across curve
    * Market awaits FOMC minutes

    By Jennifer Kwan	
    TORONTO, April 3 (Reuters) - The Canadian dollar slipped
against its U.S. counterpart on Tuesday, tugged lower by soft
global equities and commodity prices after rallying on the
lingering effects of a more upbeat outlook from the Bank of
Canada.	
    The currency gave back its gains after soaring
overnight to its strongest level in nearly two weeks of C$0.9888
against the U.S. dollar, or $1.0113, on comments by Bank of
Canada Governor Mark Carney, who said in a speech on Monday that
 Canada's economy is doing better than expected and the threat
from the European debt crisis has lessened. 	
    At around 7:50 a.m. (1150 GMT), the Canadian dollar was at
C$0.9929 against the U.S. dollar, or $1.0072, lower than its
North American session finish of C$0.9903 versus the greenback,
or $1.0098.	
    " Everything is moving in tandem. Equities are a bit weaker,
oil prices a bit lower, euro a bit lower and Canada following
suit," said Camilla Sutton, chief currency strategist at Scotia
Capital.	
    Global stocks were slightly off, while oil
prices slipped below $125 a barrel on Tuesday after U.S.
gasoline demand data weakened sentiment. Gold prices were also
weaker. 	
    With no domestic releases of note on Tuesday, currency
traders would look to North American stock markets for further
guidance on the day.	
    Investors are waiting for the minutes from the U.S. Federal
Open Market Committee meeting of March 13, due later on Tuesday,
seeking clues on a potential new wave of quantitative easing.
  	
    Canadian bond prices climbed across the curve. The 2-year
bond was up 2 Canadian cents to yield 1.203 percent,
while the 10-year bond rose 13 Canadian cents to
yield 2.110 percent.