REFILE-CANADA FX DEBT-C$ at 20-mth high on upbeat US data

Mon Apr 5, 2010 8:20am EDT
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  (Fixes typo in headline and 2nd paragraph)
 * C$ climbs to C$1.0057, or 99.17 U.S. cents, eyes parity
 * Bonds lower across the curve
 By Claire Sibonney
 TORONTO, April 5 (Reuters) - The Canadian dollar climbed
against its U.S. counterpart on Monday, reaching a 20-month
high as commodities and other riskier assets rallied following
welcome data that showed U.S. employers created jobs last
 At 7:56 a.m. (1156 GMT), the Canadian dollar was at
C$1.0057 to the U.S. dollar, or 99.43 U.S. cents, up from
Thursday's finish at C$1.0084 to the U.S. dollar, or 99.17 U.S.
cents. Earlier, the Canadian dollar hit C$1.0051, its highest
point since parity was reached in July 2008.
 "I think parity is imminent. I would expect to see it
today, tomorrow. We really do have all the factors lining up
for us here," said Camilla Sutton, a currency strategist at
Scotia Capital.
 "We have strong domestic data, we have a very strong fiscal
sovereign position and there is an economic global recovery and
that is good for Canada."
 U.S. data on Friday showed nonfarm payrolls rose at the
fastest pace in three years, the strongest signal yet that its
economic recovery is on a solid footing. [ID:nN01126422]
 Sutton also pointed to 18-month highs for oil and copper
prices, and general sentiment in favor of the Canadian dollar
and Canadian-based assets. [O/R] [MET/L]
 With risk appetite back on, Canadian bond prices were lower
across the curve, following the U.S. Treasury market, where
yields shot up after the positive jobs data. [US/]
 The two-year government bond CA2YT=RR fell 9 Canadian
cents to C$99.49 to yield 1.773 percent, while the 10-year bond
CA10YT=RR lost 44 Canadian cents to C$101.15. to yield 3.601
  (Reporting by Claire Sibonney, Editing by Chizu Nomiyama)