CANADA FX DEBT-C$ flat as investors eye U.S. earnings

Mon Jul 13, 2009 7:52am EDT
 
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 * C$ bounces comfortably off overnight low
 * Awaits direction from U.S. corporate earnings
 * Bond prices flat across the curve
 By Frank Pingue
 TORONTO, July 13 (Reuters) - Canada's dollar was relatively
flat versus the U.S. currency on Monday as investors opted out
of major commitments ahead of the flurry of quarterly results
due this week from U.S. bellwether companies.
 A general aversion to risk had dragged the Canadian dollar
down to as low as C$1.1671 to the U.S. dollar, or 85.68 U.S.
cents, overnight before it staged a rebound to C$1.1620 to the
U.S. dollar, or 86.06 U.S. cents.
 However, there was little conviction behind the currency's
move as investors were largely biding their time until catching
a glimpse of quarterly results due this week from the big U.S.
banks and industrial bellwethers.
 "We're really just range trading waiting for the corporate
news out of the U.S. which is really by far the most important
driver this week," said Adam Cole, global head of FX strategy
at RBC Capital Markets in London. "So we're bouncing around in
a range today waiting for some direction in equities."
 At 7:40 a.m. (1140 GMT), the Canadian unit was at C$1.1634
to the U.S. dollar, or 85.95 U.S. cents, up from C$1.1647 to
the U.S. dollar, or 85.86 U.S. cents, at Friday's close.
 Capping the Canadian dollar's rise was a slide in prices
for key Canadian exports like oil and gold. Oil prices slipped
below $60 a barrel, heading toward a seven-week low given
concerns over the state of the global economy. Meanwhile, gold
prices also edged lower.
 The Canadian data due this week are the manufacturing sales
report for May due out on Wednesday, followed by the more key
consumer price index figures for June due on Friday.
 Domestic bond prices were flat across the curve.
 (Editing by Theodore d'Afflisio)