CANADA FX DEBT-C$ edges higher, domestic CPI in focus

Fri Apr 20, 2012 8:21am EDT
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* 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
    "We're seeing commodity prices, equity markets generally
    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
    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
    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.