CANADA FX DEBT-C$ gains against greenback after soft U.S. GDP data

Wed Jun 26, 2013 9:47am EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

By Solarina Ho
    TORONTO, June 26 (Reuters) - The Canadian dollar firmed
against the U.S. currency on Wednesday, as the greenback slipped
against some major currencies after the release of
weaker-than-expected U.S. economic growth data.
    First-quarter gross domestic product expanded at a 1.8
percent annual rate in the United States. Economists polled by
Reuters had expected growth to remain unrevised at 2.4 percent.
 
    "It's really being buffeted around by big dollar moves again
in the absence of any really significant local moves. So the
(U.S.) dollar is really being knocked lower generally by the GDP
revision," said Adam Cole, global head of FX strategy at RBC
Capital Markets in London.
    "Markets are just so dominated by the U.S. dollar view at
the moment. Nothing much else is really getting a lock in."
    At 9:10 a.m. Eastern time (1310 GMT), the Canadian dollar
 was trading at C$1.0468 versus the greenback, or 95.53
U.S. cents. This was stronger than Tuesday's North American
finish at C$1.0509, or 95.16 U.S. cents.
    Reassuring comments by the European Central Bank chief also
helped overall sentiment, with Mario Draghi saying monetary
policy will remain accommodative. 
    The loonie, as Canada's dollar is nicknamed, was stronger
against most other currencies, but was underperforming its
commodity-linked counterparts - the New Zealand and
Australian dollars.
    Canadian government debt prices were mostly stronger. The
two-year bond rose 9 Canadian cents to yield 1.218
percent. The benchmark 10-year bond rose 59 Canadian
cents to yield 2.468 percent.