CANADA FX DEBT-C$ boosted by trade data, global markets

Thu Nov 10, 2011 9:44am EST
 
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 * C$ higher at C$1.0178 vs US$, or 98.25 U.S. cents
 * Surprise Sept trade surplus pushes C$ to session high
 * Bonds lower across the curve
 By Jennifer Kwan
 TORONTO, Nov 10 (Reuters) - The Canadian dollar got a lift
on Thursday after Canada posted a surprise trade surplus in
September, while global stocks, commodity and currency markets
stabilized on easing euro zone concerns.
 A surge in energy exports helped Canada post an unexpected
trade surplus of C$1.246 billion ($1.22 billion) in September,
the first of its kind since January 2011, Statistics Canada
data indicated. [ID:N1E7A90DQ]
 Market operators had predicted a deficit of C$570 million
after a revised C$487 million deficit in August.
 The rise in exports suggests a pick up in consumption,
predominantly from the States, which would be seen as a
positive for Canadian economic growth.
 "It's a contributing factor to a market that is already
entering North America on a bit more of a positive note --
compression in yields with respect to Italy, the lack of
notably political or newsworthy disruptions," said Jack Spitz,
managing director of foreign exchange at National Bank
Financial.
 "The market is looking a bit more optimistic and that
optimism has reflected itself in overall offers to the U.S.
dollar with the Canadian dollars attracting some bids."
 At 9:17 a.m. (1417 GMT), the Canadian dollar CAD=D4 was
at C$1.0178 versus the greenback, or 98.25 U.S., after hitting
a session high of C$1.0168.
 On Wednesday, it closed at C$1.0217 or 97.88 U.S. cents.
 The move higher on Thursday followed a 1.3 percent drop the
day before on signs Italian borrowing costs reached a breaking
point after Prime Minister Silvio Berlusconi's insistence on
elections instead of an interim government opened the way to
prolonged instability. [ID:nL6E7M93EM]
 The euro rose on Thursday while world stocks held above a
three-week trough on hopes new governments being formed in
Italy and Greece could help fend off a euro zone break up.
[MKTS/GLOB]
 Canadian government bond prices fell alongside  U.S.
Treasuries, which dropped as global markets stabilized and on
better-than-expected U.S. jobless claims data. [US/]
 The two-year Canadian government bond CA2YT=RR edged 6
Canadian cents lower to yield 0.933 percent, while the 10-year
bond CA10YT=RR dropped 45 Canadian cents to yield 2.138
percent.
 ($1=$1.02 Canadian)
 (Editing by Jeffrey Hodgson)