CANADA FX DEBT-C$ recovers as risk stabilizes, bonds mixed

Thu Mar 11, 2010 2:57pm EST
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 * Canadian dollar recovers to 97.47 U.S. cents
 * Carney's speech makes no reference to current policy
 (Adds details)
 By Ka Yan Ng
 TORONTO, March 11 (Reuters) - The Canadian dollar made up
almost all its earlier decline against the greenback on
Thursday as riskier assets such as equities and crude oil pared
 There was little reaction in the currency after Bank of
Canada Governor Mark Carney's speech to students in Ottawa
contained no reference to the central bank's current policy.
 At 2:30 p.m. (1930 GMT), the Canadian dollar was at
C$1.0260 to the U.S. dollar, or 97.47 U.S. cents, down
marginally from Wednesday's close at C$1.0259 to the U.S.
dollar, or 97.48 U.S. cents.
 The currency's early softness, which took it as low as
96.86 U.S. cents, followed data showing a smaller U.S. trade
deficit, which had spurred choppy trading in the U.S. dollar.
 "Commodities and equities have really stabilized. I think
that's part of the reason you saw no follow-through selling
(from) earlier in the day. The markets are really just on hold
until the jobs numbers tomorrow," said Shane Enright, executive
director, foreign exchange sales at CIBC World Markets.
 Canada is expected to have added 20,000 jobs in February,
according to median forecasts in a Reuters survey.
 Bond prices were mixed on Thursday afternoon. The
short-dated bonds were pressured by early domestic data that
was stronger than expected and showed the recovery was heating
up quicker than some had expected.  [ID:nN1180093]
 But the longer-term issues floated higher, alongside their
U.S. counterparts, after a well-bid auction of U.S. Treasury
bonds.  [US/]   
 The two-year government bond CA2YT=RR was off 2 Canadian
cents to C$99.92 to yield 1.544 percent, while the 10-year bond
CA10YT=RR was up 15 Canadian cents at C$101.82 to yield 3.517
 (Reporting by Ka Yan Ng;editing by Rob Wilson)