CANADA FX DEBT-Canadian dollar ticks higher, eyes data

Mon Feb 1, 2010 8:28am EST
 
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 * C$ steady at 93.55 U.S. cents
 * Bonds lower as stock index futures point higher
 TORONTO, Feb 1 (Reuters) - The Canadian dollar was a touch
stronger, rising off six-week lows against the U.S. dollar, and
searching for a catalyst to give it firmer direction on
Monday.
 At 8:05 a.m. (1305 GMT), the Canadian dollar was at
C$1.0690 to the U.S. dollar, or 93.55 U.S. cents, up from
C$1.0693 to the U.S. dollar, or 93.52 U.S. cents, at Friday's
close.
 "It's been jumpy but without any clear direction," said
Eric Lascelles, chief economics and rates strategist at TD
Securities. "The thing that we're keying off of is the economic
data today."
 The key data on Monday was expected to be the Institute for
Supply Management's January manufacturing index and December
construction spending, which are due at 10 a.m. EST (1500 GMT),
with expectations that the U.S. manufacturing sector expanded
at its fastest pace in nearly four years.
 Lascelles said he expected the data would probably be
"strong enough to make people feel reasonably good about the
world and continue this tentative risk-on trade."
 Overnight, the currency weakened to C$1.0722 to the U.S.
dollar, or 93.27 U.S. cents, but edged off that low as U.S.
stock index futures rose and the price of oil firmed,
suggesting risk appetite may be on the rise.
 The data calendar for Canada is empty until Thursday when
data for building permits for December and a gauge of
purchasing activity for January are due. But the main focus
will be on Friday when market players look for further evidence
of an economic recovery in the Canadian and U.S. jobs data.
ECONCA
 Canadian bonds were lower with their U.S. counterparts
ahead of the U.S. data and U.S. stock index futures that
suggested a positive market open.
 The two-year bond CA2YT=RR edged 4 Canadians cent lower
to C$100.31 to yield 1.350 percent, while the 10-year bond
CA10YT=RR fell 16 Canadian cents to C$103.02 to yield 3.370
percent.
 (Reporting by Ka Yan Ng, Editing by Chizu Nomiyama)