CANADA FX DEBT-C$ climbs against greenback on risk rally

Tue Jul 6, 2010 8:01am EDT
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 * C$ rises to 94.51 U.S. cents
 * Bonds lower across the curve
 TORONTO, July 6 (Reuters) - The Canadian dollar rose
against its U.S. counterpart on Tuesday in a broad rally of
riskier assets that boosted global stocks and commodity
 Helping to lift sentiment was an upbeat assessment of the
global economy by the Reserve Bank of Australia, as well as
receding sovereign debt fears in Europe. [FRX/]
 "The Canadian dollar is rallying along with other
currencies that are associated with risk, with the dollar and
the yen being sold off," said Jack Spitz, managing director of
foreign exchange at National Bank Financial.
 Canada's commodity-linked currency was also boosted by oil
prices rebounding near $73 a barrel and copper firming to
one-week high. [O/R] [MET/L]
 Gold rose back above $1,210 an ounce as physical demand for
the precious metal recovered after last week's price dip, and
as the weaker dollar encouraged some buying. [GOL/][XAU=]
 At 7:41 a.m. (1141 GMT), the Canadian dollar CAD=D4 was
at C$1.0581 to the U.S. dollar, or 94.51 U.S. cents, up from
Monday's finish at C$1.0650 to the U.S. dollar, or 93.90 U.S.
 "A sustained move above 1.0680 is elusive and until that
event it is hard to get too bearish on CAD," Sue Trinh, senior
currency strategist at RBC Capital Markets in Hong Kong, said
in a note to client.
 On the domestic data front, May building permits are
expected to drop by 2 percent month over month, reversing
almost half the 5.4 percent gain in April.
 Canadian government bonds fell across the curve, while U.S.
Treasuries edged up in Europe following a long-weekend holiday
as the market played catch-up to recent gains in other
safe-haven assets. [US/]
  The two-year government bond CA2YT=RR dropped 3 Canadian
cents to yield 1.425 percent, while the 10-year bond
CA10YT=RR shed 7 Canadian cents to yield 3.089 percent.
 (Reporting by Claire Sibonney; Editing by Theodore d'Afflisio)