CANADA FX DEBT-C$ moderately firmer on softer US$, higher crude prices

Wed Mar 25, 2015 9:58am EDT
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* Canadian dollar at C$1.2484 or 80.10 U.S. cents
    * Bond prices mixed across the maturity curve

    By Solarina Ho
    TORONTO, March 25 (Reuters) - The Canadian dollar was
modestly firmer against the U.S. dollar on Wednesday, supported
by higher oil prices and weak U.S. data that further pressured
the broadly softer greenback.
    The U.S. dollar, which had rallied for months, and weak
global demand likely dragged on U.S. business investment
spending plans, which fell for a sixth straight month in
February. The durable goods report is the latest data to suggest
economic growth has slowed and could prompt economists to
further scale back first-quarter growth forecasts.
    "(The Canadian dollar is) just a tad firmer - softer U.S.
data probably helped a little on that front. You've gotten broad
U.S. dollar weakness since the Fed announcement pretty much,"
said Benjamin Reitzes, senior economist and foreign exchange
strategist at BMO Capital Markets.
    Last week, the Federal Reserve raised the possibility the
next rate hike may not come as early as some market participants
had expected when it issued a more cautious outlook for U.S.
economic growth and slashed its projected interest rate path.
    The weaker U.S. dollar also makes dollar-traded commodities 
like crude, a major Canadian export, more attractive for holders
of other currencies. 
    "(The weak U.S. dollar's) helped the Canadian dollar perform
pretty well, along with most other currencies and you've got oil
prices coming back to some extent. Still weak, but well off our
lows," said Reitzes.
  At about 9:27 a.m. (1327 GMT), the Canadian dollar 
was at C$1.2484 to the greenback, or 80.10 U.S. cents, slightly
stronger than Tuesday's close of C$1.2501, or 79.99 U.S. cents.
    Markets are looking ahead to a speech by Bank of Canada
Governor Stephen Poloz on Thursday for clues on the bank's
monetary policy intentions and its outlook on the state of the
    Canadian government bond prices were mixed across the
maturity curve, with the two-year down 1 Canadian
cent to yield 0.470 percent and the benchmark 10-year
 up 5 Canadian cents to yield 1.299 percent.