CANADA FX DEBT-C$ dips ahead of data rush

Thu Dec 23, 2010 8:03am EST
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 * C$ edges down to 98.53 U.S. cents
 * Bond prices mildly lower
 * Canada Oct GDP due at 8:30; forecast of +0.3 pct
 TORONTO, Dec 23 (Reuters) - Canada's dollar dipped against
the U.S. currency on Thursday morning ahead of a large list of
economic figures, including monthly domestic growth data.
 Canada's gross domestic product figures for October, due at
8:30 a.m., will provide a first look at how the fourth-quarter
recovery has begun after September GDP shrank 0.1 percent and
third-quarter economic expansion was at a disappointing 1.0
percent annual rate.
 Analysts polled by Reuters call for a 0.3 percent uptick in
October. It's the last major piece of domestic data before the
Christmas and New Year holidays. ECONCA
 At 7:45 a.m. (1245 GMT), the Canadian currency CAD=D4 was
at C$1.0149 to the U.S. dollar, or 98.53 U.S. cents, down from
Wednesday's North American session close at C$1.0142 to the
U.S. dollar, or 98.60 U.S. cents.
 "The Canadian dollar is sitting slightly softer than
yesterday. There's nothing particularly exciting in terms of
the broader positioning, it's been familiar territory dating
back to late September sitting in the par to C$1.03 range,"
said Eric Lascelles, chief Canada macro strategist at TD
 "We think GDP could be a touch soft and I wonder whether
the market is gearing up for that possibility by selling the
Canadian dollar."
 Still, he noted that a busy day for U.S. economic data
could also have a lot of influence, with data for weekly
jobless claims, November personal income and consumption, and
durable goods orders. As well, final figures for December's
Thomson Reuters/University of Michigan consumer sentiment index
are due and November new home sales.
 Canadian bond prices were mildly lower, tracking U.S.
Treasuries, ahead of the data rush. [US/] The two-year bond
CA2YT=RR was down 3 Canadian cents to yield 1.680 percent,
while the 10-year bond CA10YT=RR slipped 16 Canadian cents to
yield 3.188 percent.
 (Reporting by Ka Yan Ng, Editing by Chizu Nomiyama)