CANADA FX DEBT-C$ gives back some of last week's gains

Mon Nov 24, 2014 9:56am EST
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

* Canadian dollar at C$1.1250, or 88.89 U.S. cents
    * Bond prices mixed
    * Investors look ahead to retail sales on Tuesday

    By Andrea Hopkins
    TORONTO, Nov 24 (Reuters) - The Canadian dollar gave back
some of last week's gains in early trade on Monday as the
greenback was mostly stronger amid signs from central banks in
Europe and Asia that they are willing to do more to support
economic growth and inflation.
    World stock markets rose after a frenetic round of activity
at central banks in Asia and Europe suggested concern about
growth will be met with action. 
    European shares, which had their strongest day in a month on
Friday after China's central bank cut interest rates, edged
higher still after sources told Reuters that Beijing was ready
to ease policy further to head off slowing inflation.
 
    The Canadian currency rallied to a three-week high against
the greenback on Friday after Canadian inflation data came in
stronger than forecast, making an interest-rate cut by the Bank
of Canada highly unlikely.
    "(The Canadian dollar) last week strengthened on the week
after that stronger-than-expected inflation print, but going
into the open today we're a little bit weaker," said Camilla
Sutton, chief currency strategist at Scotiabank. "It's a mixed
U.S. dollar environment with the European strong and most of the
growth currencies weak." 
    In commodity markets, oil edged lower ahead of a key OPEC
meeting on Thursday with markets uncertain that producers would
agree on a meaningful output cut to support prices. Brent
 fell 13 cents at $80.24 a barrel, while U.S. crude
 was 9 cents lower at $76.42.
    At 9:30 a.m. EST (1430 GMT) the Canadian dollar was
at C$1.1250 to the greenback, or 88.89 U.S. cents, weaker than
Friday's North American session close of C$1.1239, or 88.98 U.S.
cents, after strengthening about 0.4 percent last week.
    Sutton said investors are waiting for Canadian retail sales
data for September, due out on Tuesday. It will be the final key
piece of economic data before third-quarter gross domestic
product figures are released on Friday. Market participants are
expecting a robust September after a very weak showing in July
and August.
    Canadian government bond prices were mixed across the
maturity curve, with T-bills higher and longer-dated maturities
slipping. The two-year shed 1 Canadian cent to yield
1.070 percent, while the benchmark 10-year dropped
10 Canadian cents to yield 2.018 percent.

 (Reporting by Andrea Hopkins; Editing by Peter Galloway)