CANADA FX DEBT-C$ steady ahead of Dec trade figures

Fri Feb 11, 2011 8:16am EST
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]



 * C$ flat at $1.0043
 * Bonds track U.S. Treasuries higher on Egypt unrest
 * Canada, U.S. trade figures may be key driver
 By Ka Yan Ng
 TORONTO, Feb 11 (Reuters) - Canada's dollar was flat
against the U.S. dollar on Friday, remaining trapped in its
recent range ahead of North American trade figures for
December.
 Canadian and U.S. trade data for December, due at 1330 GMT,
are the key figures market participants are watching amid
softening risk sentiment on Friday.
 World stocks fell for the third straight day partly on
growing tensions in Egypt after President Hosni Mubarak
disappointed protesters hoping he would resign, though oil
prices and the U.S. dollar advanced. [MKTS/GLOB]
 However, Canada's dollar was once again mired in a moderate
39-point range between C$0.9948-C$0.9987. Although it was not
far off the one-week low at C$0.9988 hit on Thursday, it was
still a relative outperformer against other currencies.
 "You could get some reaction... especially if the Canadian
trade numbers surprise to the upside. (It) would then give a
greater sense that Q4 real GDP could grow faster than what the
Bank of Canada had expected," said David Tulk, chief Canada
macro strategist at TD Securities.
 Economists in a Reuters survey forecast Canada's trade
deficit widened to C$350 million in December versus a C$81
million deficit for November. ECONCA
 At 7:57 a.m. (1257 GMT), the Canadian dollar CAD=D4 was
at C$0.9957 to the U.S. dollar, or $1.0043, little changed from
Thursday's North American session at C$0.9958 to the U.S.
dollar, or $1.0042.
 Michael O'Neill, managing director at Knightsbridge Foreign
Exchange, said the cureency was still consolidating in a
C$0.9830-C$1.0010 range.
 Canadian government bond prices firmed on Friday, tracking
U.S. Treasuries, as intensifying political unrest in Egypt
began to unsettle investors prompting some flows into
safe-haven assets.
 The two-year Canadian government bond CA2YT=RR  climbed 3
Canadian cent to yield 1.864 percent, while the 10-year bond
CA10YT=RR rose 10 Canadian cents to yield 3.455 percent.
  (Reporting by Ka Yan Ng, Editing by Chizu Nomiyama)