CANADA FX DEBT-C$ edges higher with sentiment, bonds dip
* C$ edges up to 97.19 U.S. cents
* Bonds weaken as investors continue shift from safety
TORONTO, June 15 (Reuters) - The Canadian dollar edged up against the U.S. currency on Tuesday on moderately firmer energy prices, while strong demand for European debt gave anxious investors some relief about the euro zone's finances.
Canadian bond prices were weaker across the curve as North American stock markets were poised to follow overseas equity markets higher, whetting further the recent appetite for riskier assets.
U.S. stock index futures pointed to a slightly higher open on Wall Street on Tuesday, as did Toronto's main stock index, underscored by firm commodity prices. [.N] [.TO]
Solid demand at debt auctions in Spain, Ireland and Belgium kept the euro higher and offset a weak German ZEW investor sentiment survey. [FRX/] [ID:nLDE65E0WQ] [ID:nWLA6316] [ID:nTAR001853]
"We've had some strength coming into the North American trading day, in line with a lot of the other currencies. The Canadian dollar was ahead of the game before that and it's continuing in its supported fashion against the U.S. dollar," said Sacha Tihanyi, currency strategist at Scotia Capital.
Oil prices stood about 1 percent higher, while natural gas rose more than 2 percent, adding to gains from the previous session. The Canadian dollar's movements are often influenced by commodity prices. [O/R]
At 8 a.m. (1200 GMT), the Canadian dollar was at C$1.0289 to the U.S. dollar, or 97.19 U.S. cents, up from C$1.0325 to the U.S. dollar, or 96.85 U.S. cents, at Monday's close.
The two-year government bond CA2YT=RR was off 3 Canadian cents to yield 1.823 percent, while the 10-year bond CA10YT=RR slipped 13 Canadian cents to yield 3.447 percent. (Reporting by Ka Yan Ng; Editing by Theodore d'Afflisio)
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