3 Min Read
* C$ at C$0.9908 vs US$, or $1.0093 * German data, U.S. quarterly reports boosts mood * Domestic inflation data on tap * Bonds weaker across curve By Jennifer Kwan TORONTO, April 20 (Reuters) - Canada's dollar rose against its U.S. counterpart on Friday as steady European data and upbeat U.S. quarterly results from bellwethers such as Microsoft and General Electric reassured investors about the stability of global growth. Data showed German business morale unexpectedly climbed for the sixth month in a row in April in a sign of how resilient Europe's largest economy remains against worries about the euro zone debt crisis. Munich-based Ifo think tank said on Friday its business climate index, based on a monthly survey of some 7,000 companies, inched up to 109.9 in April from 109.8 in March, taking it to its highest level since July 2011. "News overnight has been a bit encouraging for risk assets. Generally the number in Europe being a little bit stronger than consensus," said Shaun Osborne, chief currency strategist at TD Securities. "We're seeing commodity prices, equity markets generally rally." Also supportive of the risk tone was General Electric Co , the largest U.S. conglomerate, which reported first-quarter profit that topped analysts' expectations, while Microsoft Corp posted profits that beat estimates after the close on Thursday. At around 8:05 a.m. (1205 GMT), the Canadian dollar was at C$0.9908 against the greenback, or $1.0093, up from its Thursday finish at C$0.9952 against the U.S. dollar, or $1.0048. Concerns about the euro zone's financial stability has pressured the Canadian currency, chipping away at sharp gains earlier in the week after the Bank of Canada surprised the market with a more bullish economic forecast and signaled it was starting to think more seriously about tightening monetary policy. The market would next focus on domestic inflation data, due on Friday morning. Canada's annual inflation rate is expected to have fallen back towards the central bank's 2 percent target in March. Canadian government bond prices were lower. The two-year bond shed 3 Canadian cents to yield 1.352 percent. The benchmark 10-year bond was down 18 Canadian cents to yield 2.067 percent.