CANADA FX DEBT-C$ stumbles after surprise trade deficit

Tue Jan 12, 2010 4:43pm EST
 
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* Ends at C$1.0393 per US$, or 96.22 U.S. cents

* China signals tighter monetary environment

* Bond prices mostly higher across curve (Updates to close, adds details, quotes)

By Jennifer Kwan

TORONTO, Jan 12 (Reuters) - The Canadian dollar fell against the U.S. currency on Tuesday after data showed the country's trade balance unexpectedly slipped into deficit in November, raising worries about the health of the recovery.

The currency dropped to a session low of C$1.0415 to the U.S. dollar, or 96.02 U.S. cents, from C$1.0354, or 96.58 U.S. cents just before the report's release.

"The numbers in Canada this morning weren't great," said Jon Gencher, director of foreign exchange sales at BMO Capital Markets.

A Statistics Canada report on Tuesday showed the trade deficit totaled C$344 million as exports grew 1.1 percent from the previous month to C$31.58 billion and imports jumped 3.9 percent to C$31.93 billion.

The median forecast of analysts in a Reuters poll was for a surplus of C$600 million. [ID:nN12188141]   Continued...