CANADA FX DEBT-C$ slips as commodities, stocks pull back
* C$ falls to 99.77 U.S. cents
* Bonds firmer across curve
By Claire Sibonney
TORONTO, Jan 5 (Reuters) - The Canadian dollar retreated against the greenback for a second session on Wednesday as this week's sharp fall in commodity prices prompted investors to take a breather.
Oil, a key Canadian export that only a few days ago looked to be heading to $100 a barrel again, hovered below $89 a barrel. [O/R]
The price of gold and copper also tumbled, hurt by profit-taking and a stronger greenback and putting pressure on world equity markets. [MKTS/GLOB]
"Generally what we're seeing is that CAD is a mid performer here today," said Camilla Sutton, chief currency strategist at Scotia Capital. "Overall we're in an environment of risk aversion, so that's created some downside pressure on equities as well commodities and some strength in the U.S. dollar generally. Canada is reacting on the back of that."
At 7:57 a.m. (1257 GMT), the Canadian dollar CAD=D4 stood at C$1.0023 to the U.S. dollar, or 99.77 U.S. cents, down from Tuesday's finish at C$0.9985 to the U.S. dollar, or $1.0015.
Sutton said the rest of the day could see the Canadian dollar move between C$0.9950 and C$1.0050, hovering on either side of parity, which is in line with Scotia's forecast for the first part of the year.
December employment reports on Friday will provide the main focus this week, with job growth expected in both the United States and Canada. U.S. Federal Reserve Chairman Ben Bernanke's congressional testimony on Friday will also be closely followed. [ID:nN31145126] ECON
Canadian government bond prices were mixed across the curve. The two-year bond CA2YT=RR was up 8 Canadian cents to yield 1.681 percent, while the 10-year bond CA10YT=RR was down 8 Canadian cents to yield 3.145 percent. (Editing by Padraic Cassidy)
© Thomson Reuters 2017 All rights reserved.