CANADA FX DEBT-C$ softens as oil prices drop below $76

Fri Jun 18, 2010 8:17am EDT
 
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 * C$ at C$1.0290, or 97.18 U.S. cents
 * Bond prices flat across curve
 By Jennifer Kwan
 TORONTO, June 18 (Reuters) - The Canadian dollar slipped on
Friday, nudged lower by soft oil prices that were hit by signs
that economic growth in the world's top oil consumers may not
be as robust as foreseen.
 Oil dropped more than $1 to below $76 a barrel, dragged
down in part by a warning from a Chinese central bank adviser
that economic growth was expected to slow in the second half of
this year, as well as weak U.S. economic data released the day
before. [ID:nTST000214]
 "We're seeing some downward pressure on oil prices so we're
below yesterday's close and we're seeing that the U.S. dollar
is generally mixed," said Camilla Sutton, currency strategist
at Scotia Capital. [FRX/]
 At 7:43 a.m. (1143 GMT), the Canadian dollar was at
C$1.0290 to the U.S. dollar, or 97.18 U.S. cents, down from
Thursday's finish at C$1.0270 to the U.S. dollar, or 97.37 U.S.
cents.
 Investors shrugged off a speech in St John's, Newfoundland,
by Bank of Canada Governor Mark Carney, who cautioned investors
again on Friday not to take another interest rate hike for
granted, saying volatile global conditions mean no particular
path for monetary policy is preordained. [ID:nN18116394]
 The speech was nearly identical to one given on June 16.
[ID:nN16178696]
 The currency's flat to softer performance on Friday
followed disappointing jobless claims and factory activity
data, which was released the day before. [ID:nN17207354]
[ID:nN17254724]
 Canadian government bond prices were largely flat to lower,
influenced by softer U.S. Treasuries on easing euro zone debt
concerns. [US/]
 The two-year government bond CA2YT=RR slipped 2 Canadian
cents to yield 1.733 percent, while the 10-year bond
CA10YT=RR ticked 5 Canadian cents higher to yield 3.298
percent.
 (Reporting by Jennifer Kwan, Editing by Chizu Nomiyama)