CANADA FX DEBT-C$ edges higher with sentiment, bonds dip

Tue Jun 15, 2010 8:14am EDT
 
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 * 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)