CANADA FX DEBT-C$ ticks up on commodities, bonds rise

Thu Oct 1, 2009 10:03am EDT
 
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 * Canadian dollar steady at 93.41 U.S. cents
 * Bonds gain across the board
 * Focus on Friday's U.S. nonfarm payrolls for September
 TORONTO, Oct 1 (Reuters) - The Canadian dollar was slightly
higher against the U.S. currency on Thursday morning as
commodity prices were steady and market players prepared for
Friday's U.S. jobs figures.
 The price of oil CLc1, a key Canadian export, was steady
above $70 a barrel after jumping more than 5 percent on
Wednesday. Gold was also steady.
 "What we're seeing so far in the North American session has
been buying of commodity-type currencies. Commodities are
consolidating," said Jack Spitz, managing director of foreign
exchange at National Bank Financial.
 "It's relatively thin, the data that's come out, by and
large, has been somewhat offsetting from a (U.S.) dollar
perspective."
 Data on Thursday showed personal spending in the United
States rose at its fastest pace in nearly eight years in
August, but the number of workers filing new claims for jobless
benefits rose last week, indicating a weak labor market would
weigh on economic recovery. [ID:nN01395512]
 No Canadian data was on tap for Thursday.
 At 9:45 a.m. (1345 GMT), the Canadian dollar was at
C$1.0705 to the U.S. dollar, or 93.41 U.S. cents, up from
Wednesday's close at C$1.0707 to the U.S. dollar, or 93.40 U.S.
cents.
  Friday's U.S. jobs report will have a larger influence on
both currency and bond markets. The report is expected to show
the pace of job losses in September slowed from August, while
the jobless rate is seen rising. ECONUS
 Market players were also digesting comments by the European
Union's economic and monetary affairs commissioner, Joaquin
Almunia, who said euro strength would be discussed when G7
officials meet in Istanbul on the weekend. [ID:nWEA3160]
 His comments followed statements from finance officials
around the world in the past week on their discomfort with
their currencies' strength against the U.S. dollar, which has
tumbled around 10 percent against a basket of major currencies
in the past six months.
 Canadian bonds were higher across the curve on the surprise
jump in U.S. weekly jobless claims, while North American stocks
started lower, lifting the appeal of safe-haven government
bonds.
 The two-year bond CA2YT=RR rose 5 Canadian cents to
C$99.55 to yield 1.243 percent, while the 10-year bond
CA10YT=RR gained 22 Canadian cents to C$103.82 to yield 3.284
percent. The 30-year bond CA30YT=RR climbed 20 Canadian cents
to C$119.80 to yield 3.832 percent.
 (Reporting by Ka Yan Ng; editing by Peter Galloway)