CANADA FX DEBT-C$ extends gains, bonds ease as equities rise

Wed Mar 11, 2009 10:49am EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* Canadian dollar up on rising risk appetite, oil weighs

* Bonds flat to lower as stocks gain; U.S. supply eyed

* Market focus on Friday's trade, employment data

TORONTO, March 11 (Reuters) - The Canadian dollar climbed against the U.S. dollar on Wednesday morning as the market gained confidence in taking on a little more risk but the upside was limited by trepidation ahead of key economic data at the end of the week and by slipping crude oil prices.

The price of oil, which often helps determine the direction of the Canadian dollar because it is a key Canadian export, fell below $45 a barrel after a two-day rally.

The U.S. dollar's recent rally seemed to run out of steam as European and North American stock markets extended Tuesday's rise and encouraged buying of other currencies. [ID:FRX/]

At 10:42 a.m. (1442 GMT), the Canadian currency was at C$1.2785 to the U.S. dollar, or 78.22 U.S. cents, up from C$1.2852 to the U.S. dollar, or 77.81 U.S. cents, at Tuesday's close.

"With equities higher we see the (U.S.) dollar weaker against all currencies, including Canada. But the Canadian dollar itself is lagging due to the data risks that are upcoming this Friday," said Jack Spitz, managing director of foreign exchange at National Bank Financial Group.

"Add to that the fact that commodities are posting losses, led by crude. Little help from commodities at the moment and the data risks are going to undermine any big gains to the Canadian dollar."   Continued...