CANADA FX DEBT-C$ tracks world shares lower ahead of Fed

Thu Aug 30, 2012 8:13am EDT
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* C$ slips to C$0.9916 vs US$, or $1.0085
    * Bond prices climb across the curve

    By Claire Sibonney
    TORONTO, Aug 30 (Reuters) - Canada's currency fell against
the U.S. dollar on Thursday, weighed by uncertainty over central
bank action to stimulate the global economy.
    Markets are waiting to see whether U.S. Federal Reserve
Chairman Ben Bernanke will provide any hints of a third round of
quantitative easing at a meeting of central bankers in Jackson
Hole, Wyoming, on Friday. 
    Investors' reluctance to take on big bets before Friday
dragged down world shares on Thursday, and with them, other
riskier assets such as the Canadian dollar, too. 
    "It looks like it's another day of markets being slightly
negative for risk and CAD being carried along by that," Adam
Cole, global head of foreign exchange strategy at RBC Capital
Markets in London.
    Traders also expressed some doubts about the European
Central Bank's next steps to tackle the region's three-year-old
debt crisis.
    The ECB is expected to unveil concrete plans to help crimp
crippling borrowing costs in Spain and Italy at a policy meeting
on Sept. 6.
     At 7:56 a.m. ET (1156 GMT), the Canadian dollar stood at
C$0.9916 versus the greenback, or $1.0085, down from Wednesday's
close at C$0.9895 against the U.S. unit, or $1.0106.
    North American economic data due to be released later on
Friday, including U.S. weekly jobless claims, may provide
markets with further direction.
    Beyond the Canadian dollar's session low around C$0.9920,
analysts pointed to support near the 50-, 100- and 200-day
moving averages, approaching C$1.01 on the other side of parity.
    Canadian bond prices crept up across the curve, with the
two-year bond up 2 Canadian cents to yield 1.130
percent and the benchmark 10-year bond up 15
Canadian cents to yield 1.785 percent.