CANADA FX DEBT-C$ backs off parity, bonds little changed

Mon Nov 8, 2010 8:41am EST
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 * C$ falls to 99.61 U.S. cents
 * Bonds lower
 * Canada housing starts fall greater-than-expected 9.2 pct
 TORONTO, Nov 8 (Reuters) - The Canadian dollar was slightly
weaker against the U.S. currency on Monday, unable to hold
above parity as commodity prices softened and euro zone
peripheral debt fears resurfaced.
 The Canadian dollar remained soft after Canadian housing
starts fell more than than expected, down 9.2 percent to
167,900 units in October from a downwardly revised 185,000
units in September. [ID:nHND005517] ECONCA
 Meanwhile, euro zone peripheral debt concerns reemerged and
weighed on the euro, while Friday's U.S. jobs data continued to
lend support to the greenback. Commodity prices were also a
little weaker, with the price of crude oil, often a key driver
of the currency, down about 0.4 percent  at $86.50 per barrel.
 The Canadian dollar reached as high as 99.93 Canadian cents
to the U.S. dollar, or $1.0007, in the overnight session, then
retreating to as low as C$1.0052 to the U.S. dollar, or 99.48
U.S. cents.
 After last week's bustle of several monetary policy
decisions, including the U.S. Federal Reserve's closely watched
stimulus announcement, the week features fewer high profile
 "It's relatively quiet. We had a lot to digest last week.
 Markets are opening little changed in bonds, and the currency
continues to hover around parity and can't get through with any
conviction," said Mark Chandler, head of Canadian fixed income
and currency strategy,
 "I think it will really depend on whether there's a rethink
of all the positive risk-on action in the aftermath of (the
Fed's quantitative easing)."
 Still to come this week, September figures for the new
housing price index and trade, while Bank of Canada Governor
Mark Carney will be speaking in Geneva on Canada and global
financial reform on Tuesday at at 12:15 p.m. EST (1715 GMT).
 Traders will also be monitoring headlines ahead of the
Group of 20 meeting this week in Seoul. The G20 summit has been
pitched as a chance for leaders of the countries that account
for 85 percent of world output to prevent "currency wars" from
spreading and becoming a rush to protectionism that could
imperil the global recovery. [ID:nTOE69K01G]
 At 8:23 a.m. (1323 GMT), the Canadian dollar was at
C$1.0039 to the U.S. dollar, or 99.61 U.S. cents, down from
Friday's North American close at C$1.0004 to the U.S. dollar,
or 99.96 U.S. cents.
 The two-year bond CA2YT=RR was off 3 Canadian cents to
yield 1.490 percent, while the 10-year bond CA10YT=RR slipped
12 Canadian cents to yield 2.869 percent.
 (Reporting by Ka Yan Ng; Editing by Theodore d'Afflisio)