CANADA FX DEBT-C$ up as firm oil, stocks boost risk bid

Fri Dec 11, 2009 8:25am EST
 
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 * C$ higher at 95.28 U.S. cents
 * Bond prices sag across the curve
 By Jennifer Kwan
 TORONTO, Dec 11 (Reuters) - The Canadian dollar edged
higher on Friday morning, lifted by firmness in oil and gold
prices and economic data that reassured investors that the
global economy is on a steady growth path.
 Global equity markets, typically a barometer of risk that
often sways movements in the currency, were higher and oil
prices rose on a higher demand outlook and strong Chinese
industrial output data. [GLOB/MKTS] [O/R]
 "We're risk-on this morning with the Asian market doing
pretty well, Europe being up across the board and North
American futures being up," said J.P. Blais, vice president
foreign exchange products.
 "Combined with higher oil and gold prices, it's buy
Canada."
 At 8:01 a.m. (1301 GMT), the Canadian dollar CAD=D3 was
at C$1.0495 to the U.S. dollar, or 95.28 U.S. cents, up from
C$1.0504 to the U.S. dollar, or 95.20 U.S. cents, on Thursday.
 Blais said investor sentiment was also lifted after
analysts at ratings agency Moody's said UK and U.S. sovereign
credit ratings were not under threat at the moment. [FRX/]
 Canadian bond prices were flat to lower across the curve,
influenced by lingering effects of a poorly bid 30-year debt
auction in the United States on Friday, raising worries about
financing the huge U.S. federal deficit. [US/]
 (Reporting by Jennifer Kwan, Editing by Chizu Nomiyama)