CANADA FX DEBT-C$ softer as sovereign debt fears rise; BoC eyed

Mon Jul 18, 2011 8:32am EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* C$ slips to C$0.9594 vs US$, or $1.0423

* Bonds prices rise across the curve

* Bank of Canada interest rate announcement Tuesday

By Claire Sibonney

TORONTO, July 18 (Reuters) - The Canadian dollar slipped against its U.S. counterpart on Monday as riskier assets succumbed to fears of a sovereign debt default in Europe and the United States.

European bank stress test results last Friday did little to calm fears that the euro zone crisis is getting worse, sending the euro, stocks and bonds of highly indebted European countries down, while safe-haven gold rallied to record highs. [MKTS/GLOB]

"(The Canadian dollar) softened off a fair bit. Most things are working against it," said Camilla Sutton, chief currency strategist at Scotia Capital.

Investors shifted their attention to Thursday's emergency meeting of EU leaders, when a second bailout package for Greece will be under discussion, as well as the looming Aug. 2 deadline in the U.S. debt ceiling negotiations. [nL6E7IH099] [nN1E76G06R]

The price of oil, a key Canadian commodity, fell on the mounting worries on either side of the Atlantic and on the possibility of another emergency stock release from the International Energy Agency (IEA). [O/R]   Continued...