CANADA FX DEBT-C$ softens as US$ gets boost from jobs, CPI

Thu Aug 15, 2013 10:00am EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

* C$ at C$1.0332 vs US$, or 96.80 cents
    * U.S. jobless claims falls to near six-year low
    * U.S. CPI rises in July
    * Bond prices fall across curve

    By Solarina Ho
    TORONTO, Aug 15 (Reuters) - The Canadian dollar weakened
Thursday against a firmer U.S. dollar, which rose on upbeat U.S.
economic data that showed fewer-than-expected Americans filed
new claims for jobless benefits last week.
    The weakness in the commodities-linked Canadian dollar was
tempered in part by higher resource prices, including oil, a key
Canadian export.
    Initial U.S. jobless claims fell to a near six-year low last
week and U.S. consumer prices rose in July. The upbeat data
could push the Federal Reserve closer to scaling back its huge
bond-buying program. 
    "(The data) has been boosting the U.S. dollar," said Charles
St-Arnaud, economist and currency strategist with  Nomura
Securities in New York.
    "We should start to see the Canadian dollar weaken slightly
from here. One of the big reasons is that we believe the U.S.
dollar will be stronger against everyone going into the end of
the year."
    The Canadian dollar was trading at C$1.0332 versus
the U.S. dollar, or 96.80 U.S. cents, at 9:36 a.m. (1336 GMT).
This compares with its Wednesday close at C$1.0328, or 96.82
cents.
    The Canadian dollar, which was outperforming all major
currencies except the British pound, was seen trading between
C$1.0284 and C$1.0364 on Thursday, according to Scotiabank.
    Canadian manufacturing sales data, due out Friday, is not
expected to be a huge market mover.
    "It's extremely quiet ... Until retail sales and CPI next
week, I think the Canadian dollar will continue to mainly follow
what's happening in the global economy," said St-Arnaud.
    Prices for Canadian government debt were lower across the
maturity curve. The two-year bond slipped half a
Canadian cent to yield 1.229 percent and the benchmark 10-year
bond fell 50 Canadian cents to yield 2.690 percent.