CANADA FX DEBT-C$ rises after Bank of Canada surveys

Mon Jul 13, 2009 12:30pm EDT
 
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 * C$ higher at C$1.1544 to the U.S. dollar
 * Unit helped by Bank of Canada surveys
 * U.S. stock market rise also fuels gain
 (Adds details, quote)
 TORONTO, July 13 (Reuters) - Canada's dollar strengthened
against the U.S. currency on Monday, helped by a rebound in
equity markets and pair of Bank of Canada surveys that showed
signs of improved business sentiment.
 Lending conditions in Canada continued to tighten in the
second quarter, according to the surveys of businesses and
senior loan officers released  on Monday, but the number of
respondents pointing to tighter conditions declined and some
aspects of business sentiment improved. [ID:nOTW000406]
 "In general, given the positive aspects of those reports we
have seen some interest to buy Canadian dollar," said George
Davis, chief technical strategist at RBC Capital Markets, who
also noted the Canadian unit gained momentum once the U.S.
dollar breached the C$1.1585 level.
 Another factor helping the currency higher was a rally in
U.S. equity markets as bank shares gained following an upgrade
on Goldman Sachs Group GS.N and bullish comments from an
influential bank analyst. [ID:nN13417348]
 "What we have seen lately is when equity markets have done
better so does the Canadian dollar," added Davis.
 At 12:06 p.m. (1606 GMT), the Canadian unit was at C$1.1544
to the U.S. dollar, or 86.63 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 drop in prices for
key Canadian exports like oil, which slipped below $60 a barrel
on concerns over the state of the global economy.
[ID:nLD322824]
 Domestic bond prices were mixed across the curve, mirroring
the U.S. Treasury debt market where prices were mixed as
investors assessed risk and supply concerns. [ID:nN13423572]
 (Reporting by Jennifer Kwan; Editing by Jeffrey Hodgson)