CANADA FX DEBT-C$ pulls back from 2-month high after Bernanke

Thu Jul 14, 2011 11:35am EDT
 
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 * C$ at C$0.9582 to the U.S. dlr, or $1.0436
 * Pulls back from session high of C$0.9549 after Fed news
 * Bernanke says not ready to offer more easing yet
 * U.S. jobs, retail sales data support
 By Trish Nixon
 TORONTO, July 14 (Reuters) - The Canadian dollar pared some
gains against the U.S. currency on Thursday after touching its
highest point in over two months, following fresh comments on
monetary policy by U.S. Federal Reserve Chairman Ben Bernanke.
 The Canadian dollar, like the euro, pulled back from
session highs after Bernanke said he was not ready to take more
monetary easing action yet, noting inflation had picked up
since late 2010. [FRX/]
 But Canada's currency remained stronger. It earlier
receiving a lift from U.S. data that showed jobless claims
dropped last weak and retail sales rose slightly. Both reports
showed a bit more strength than analysts had expected.
[ID:nN1E76D0BM].
 "The data this morning ... it's viewed as relatively
benign," said Darcy Browne, managing director, capital markets
trading at CIBC World Markets.
 Stronger U.S. data typically benefits the Canadian dollar,
as the United States is Canada's largest export market.
 The Canadian dollar had also benefited from the greenback's
decline against a range of currencies following a warning from
ratings agency Moody's on Wednesday that the U.S. economy's top
credit ranking may be in danger. [ID:nLDE76D01W]
 At 10:50 a.m. (1450 GMT), the currency CAD=D4 was at
C$0.9582 to the U.S. dollar, or $1.0436, still up from
Wednesday's North American finish at C$0.9597, or $1.0420.
 Earlier, it climbed to C$0.9549, or $1.0472, the highest
point since May 11.
 Canadian bond prices were mostly softer, paring gains after
Bernanke spoke.
 The five-year bond CA5YT=RR fell 4 cents to yield 2.184
percent, while the 30-year bond CA30YT=RR was off 10 cents,
yielding 3.385 percent.
 Canadian bonds mostly outperformed U.S. Treasuries, with
the Canadian 10-year yield 2 basis points above its U.S.
counterpart, compared with 7.2 basis points yesterday.
 (Editing by Jeffrey Hodgson)