CANADA FX DEBT-C$ up on US jobless claims,awaits US deficit vote

Thu Jul 28, 2011 8:58am EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* C$ rises to C$0.9461 vs US$, or $1.0570

* Bond prices mixed across curve

* In U.S. Congress, Republican debt plan faces close vote

* US jobless claims fall below 400,000 level

By Claire Sibonney

TORONTO, July 28 (Reuters) - The Canadian dollar edged slightly higher against its U.S. counterpart on Thursday after U.S. jobless claims data came in better than expected, while investors also awaited a crucial vote in the United States later in the day on a bill to cut the deficit.

New U.S. claims for unemployment benefits dropped below the key 400,000 level for the first time since early April, pointing to some labor market improvement for Canada's largest trading partner. [nN1E76Q1FC]

The gains were limited, however, by mounting concerns about a U.S. debt default that had dragged global stocks down to their lowest in more than a week and driven the greenback to a record low against the safe-haven Swiss franc. [MKTS/GLOB]

The stalemate in Washington over lifting the debt ceiling by an August 2 deadline is increasing the possibility of a U.S. credit rating downgrade and has raised the prospect that the government of the world's leading economy will run out of money to pay its bills. [nN1E76R004]   Continued...