CANADA FX DEBT-C$ ticks higher as gold price hits record

Wed Dec 2, 2009 8:44am EST
 
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 * Canadian dollar up at C$1.0452 to the U.S. dollar
 * Bond prices flat to lower
 TORONTO, Dec 2 (Reuters) - The Canadian dollar inched up on
Wednesday, helped higher as the price of gold hit a record
high, in part on expectations of a fresh leg of U.S. dollar
weakness.
 But the move was measured given recent gains as the
"drivers of dollar/Canada are fairly mixed," said Camilla
Sutton, currency strategist at Scotia Capital.
 "Gold's reached a new high, which is probably the biggest
story," said Sutton. "Gold having reached a new high has given
some of the commodity currencies a slight advantage."
 Gold hit a record high at $1,216.75 an ounce in Europe on
Wednesday, with funds lengthening positions due to expectations
of a fresh leg of dollar weakness and more central bank buying.
[GOL/] But that was partly offset by weak oil prices on demand
concerns. [O/R]
 Sutton also noted U.S. stock index futures, a key barometer
of investor risk appetite, were little changed on Wednesday.
 At 8:30 a.m. (1330 GMT), the Canadian dollar was at
C$1.0452 to the U.S. dollar, or 95.68 U.S cents, slightly
higher than Tuesday's finish at C$1.0467 to the U.S. dollar, or
95.54 U.S cents.
 Also on Wednesday, Canada maintained its estimate of a
record high 2009-10 budget deficit of C$55.9 billion, and said
it would cut the deficit in half in two years by winding down
its economic stimulus plan.[ID:nN02536715]
 The market "is paying attention" to the report on Canada's
stimulus plan, but the news did not significantly impact the
currency, said Sutton.
 Domestic bond prices were mostly flat to lower across the
curve, tracking U.S. Treasuries, which were little changed
after a mixed private sector jobs report. [US/]
 (Reporting by Jennifer Kwan; Editing by Jeffrey Hodgson)
 ((jennifer.kwan@thomsonreuters.com; +1 416 941 8178; Reuters
Messaging: jennifer.kwan.reuters.net@reuters.com))
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FOR CANADIAN MARKETS NEWS, CLICK ON CODES IN BRACKETS:
Canadian dollar and bonds report....[CAD/][CA/]
TSX market report..........[.TO]
Headlines from global forex markets ...[FXNEWS]
Bank of Canada weekly t-bill auction...[CA/BIL]
Bank of Canada securities auctions.....[CA/AUC]
Bank of Canada interest rate story.....[CA/INT]
Reuters monthly Canadian dollar poll..FOREXPOLL33 [CAD/POLL]
Canadian interest rate poll...........[CA/POLL]
Reuters G7 quarterly economy poll....[ECILT/CA]
Weekly economic data poll......[ECI/CA][ECI/CI]
Reuters global stocks poll (Canada)...EQUITYPOLL5 [EPOLL/CA]
Top News: Canada ......[TOP/CAN]
Today in Canada.......[CA/DIARY]
Canadian debt and money news ....[D-CAN][M-CAN]
FOR CANADIAN MARKETS DATA, CLICK ON CODES IN BRACKETS:
Real-time Canadian economic RICS.......ECONCA
Canadian dollar quote............CAD=CAD=D3
Canadian bonds quote..CDBN<0#CABMK=>CABONDT
Canadian money market quote...CDMN<0#CAMMKT=>
Canada-Treasury spread rates........<CA/SPREAD>
Canadian Debt and Forex speed guide...........<CA/DEBT><CAD/1>
Canadian Equities speed guide.......<CA/EQUITY>
S&P/TSX Composite index ...............GSPTSE
FOR MAIN GLOBAL MARKET DATA AND MARKET REPORTS:
  FTSE Eurotop 300 ......FTEU3  European report .......[.EU]
  Nikkei 225..............N225  Tokyo report............[.T]
  FTSE 100................FTSE  London report...........[.L]
  Xetra DAX..............GDAXI  Frankfurt market stories[.F]
  CAC-40...FCHI  Paris market stories...[.PA]
  World Indices.......<0#.INDEX>
  Foreign exchange........[FRX/]
  Oil.......[O/R]
  US Treasuries........... [US/]
  International bonds.....[EUB/]
  Gold.........[GOL/X] or [GOL/]
  CRB index of commodity futures.........[CRB/]
  All spots FX=                           Tokyo spots AFX=
  Europe spots EFX=                    Volatilities FXVOL=
  Tokyo Forex market info from BOJ TKYFX
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