CANADA FX DEBT-C$ inches up for 5th straight session

Tue Dec 14, 2010 5:18pm EST
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   * C$ rises to 99.35 U.S. cents
 * Canadian bond prices flat to weaker across curve
 * Fed's FOMC says recovery too slow, reaffirms QE plan
 (Updates to close)
 TORONTO, Dec 14 (Reuters) - The Canadian dollar finished
higher against the U.S. dollar for a fifth straight session on
Tuesday, largely shrugging off U.S. Federal Reserve comments
that economic recovery was too slow and the Fed's affirmation
of its commitment to buying bonds to help recovery.
 The U.S. Federal Reserve's statement contained little
acknowledgment of the recent uptick in economic data but
focused squarely on high unemployment. [ID:nTLAENE627]
 "From a macro perspective there's nothing that's been
changed. The Fed met expectations in market," said Jack Spitz,
managing director of foreign exchange at National Bank
 "As a result, the market's reaction has been somewhat muted
from a currency perspective."
 The Canadian dollar CAD=D4 finished at C$1.0065 to the
U.S. dollar, or 99.35 U.S. cents, up slightly from C$1.0077 to
the U.S. dollar, or 99.24 U.S. cents, at Monday's finish.
 The currency has been trapped in a tight range during the
last several sessions, reacting to swings in the U.S. dollar
and commodity prices, and has managed to finish a touch higher
in each of the past five sessions.
 Spitz said parity with the U.S. dollar was still being
eyed, and a breakthrough could possibly come amid the raft of
U.S. data to be relased this week, including inflation for
November, various housing data, weekly jobless figures, and
regional manufacturing numbers. ECONUS
 Canadian bond prices were largely lower across the curve,
tracking U.S. Treasury prices. Treasuries fell after the Fed
statement, which showed no signs that it would curtail economic
stimulus measures, thereby raising the prospect of accelerating
growth and inflation.
 The interest-rate sensitive two-year bond CA2YT=RR sagged
12 Canadian cents to yield 1.722 percent, while the 10-year
bond CA10YT=RR fell 83 Canadian cents to yield 3.339 percent.
Canadian bonds put in a mixed performance against their U.S.
counterparts. CABONEA
 (Reporting by Ka Yan Ng; editing by Peter Galloway)