CANADA FX DEBT-C$ edges lower with oil, global growth jitters

Thu Aug 11, 2011 8:16am EDT
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   * C$ slips to C$0.9957 to the U.S. dollar, or $1.0043
 * Bonds mixed
 TORONTO, Aug 11 (Reuters) - The Canadian dollar eased
against the U.S. currency on Thursday on weakening oil prices,
and concerns that the European debt crisis could spill over to
France and hurt global economic growth.
 Trade data from both Canada and the United States, due at
8:30 a.m., could be a factor influencing the currency, though
analysts said broader factors would likely weigh on sentiment.
 Concern has shifted to the health of French and Italian
banks, which are heavily exposed to euro zone sovereign debt
problems, but there was no evidence of fresh reasons for
Thursday's declines. [MKTS/GLOB]
 Those jitters weighed on riskier assets, with world stocks
erasing gains after an early bounce and the price of U.S. oil
also reversing to be off more than 1 percent, slightly below
$82 a barrel. [O/R]
 "The dominant factor will continue to be the global outlook
on commodity prices," said Paul Ferley, assistant chief
economist at Royal Bank of Canada. 
 "That in turn is related to the take on the global
 Canada's trade deficit for June is expected to have widened
to C$1 billion from C$814 million in May.  ECONCA
 At 8:03 a.m. (1203 GMT), the Canadian dollar CAD=D4 was
at C$0.9957 to the U.S. dollar, or $1.0043, up from Wednesday's
North American session close at C$0.9948 to the U.S. dollar, or
Canada's two-year bond CA2YT=RR dipped 5 Canadian cents to
yield 0.876 percent, while the 10-year bond CA10YT=RR gained
8 Canadian cents to yield 2.322 percent.
 (Reporting by Ka Yan Ng, Editing by Chizu Nomiyama)