CANADA FX DEBT-C$, bonds reverse after U.S. data renews jitters

Thu Jul 15, 2010 11:22am EDT
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* C$ slips to 95.96 U.S. cents

* Weak U.S. data ups concerns about recovery

* Bonds gain in safety bid (Updates to midmorning)

By Ka Yan Ng

TORONTO, July 15 (Reuters) - The Canadian dollar slipped close to one-week low against the U.S. dollar on Thursday as weak U.S. data renewed concerns about the strength of the economic recovery.

Sentiment turned sour after a gauge of factory activity in New York state fell sharply, while first-time applications for U.S. jobless benefits edged down. [ID:nN15208925]

The currency fell further to its weakest level since July 9 after a lower than expected reading in the Federal Reserve Bank of Philadelphia's index of business conditions in the U.S. Mid-Atlantic region for July. [ID:nEAH104F00]

At 10:50 a.m. (1450 GMT), the Canadian dollar CAD=D4 was at C$1.0421 to the U.S. dollar, or 95.96 U.S. cents, down sharply from Wednesday's close at C$1.0341 to the U.S. dollar, or 96.70 U.S. cents.

"It's a reversion back to more longer-term fundamentals and based on the weakening sentiment with respect to U.S. economics," said Jack Spitz, managing director of foreign exchange at National Bank Financial.   Continued...