CANADA FX DEBT-C$ slides lower on gloomy data ahead of GDP

Tue Aug 30, 2011 4:45pm EDT
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* C$ ends at C$0.9782 vs US$, or $1.0223

* Current account deficit, U.S. data, euro zone set tone

* Bond prices push higher across curve (Updates to close, adds details, commentary)

By Claire Sibonney

TORONTO, Aug 30 (Reuters) - The Canadian dollar drifted lower against the greenback on Tuesday, taking its cue from gloomy domestic and U.S. economic data as investors awaited a report on Canada's GDP on Wednesday.

An unexpectedly large Canadian current account deficit undermined the risk-related currency, as did data that showed U.S. consumer confidence plunged in August to its lowest point in two years. [ID:nN1E77T0QG] [ID:nN1E77T0DO]

Data also showed U.S. single-family home prices dipped in June from May as the market continued to crawl along at depressed levels.

"We get encouraging news in terms of consumer spending numbers in the U.S. and then get disappointment with weakness in confidence and the U.S. housing market," said Paul Ferley, deputy chief economist at Royal Bank of Canada.

"We seem to be getting shifting indications of the pace of recovery in the U.S. and that seems to be buffeting financial markets generally. The Canadian dollar is getting caught up in that."   Continued...