CANADA FX DEBT-C$ edges higher, bonds dip ahead of U.S. data

Fri Sep 24, 2010 8:18am EDT
 
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 * C$ rises to 97.08 U.S. cents
 * Bonds dip ahead of U.S. data, firm equity futures
 TORONTO, Sept 24 (Reuters) - Canada's dollar rose against
the U.S. dollar as risk sentiment firmed with overnight
European data and North American equity futures that signaled a
higher start on Friday.
 The Canadian dollar edged higher on rising risk appetites,
reflected in firmer U.S. and Canadian equity index futures that
pointed to a rise at the open.
 The currency's rise comes after two straight sessions of
weakness,
 Key commodity prices, such as the price of oil, also were
higher and supportive of the Canadian dollar, which often
tracks resource prices because of Canada's commodity-based
economy.
 At 8 a.m. (1200 GMT), Canada's currency CAD=D3 was at
C$1.0301 to the U.S. dollar, or 97.08 U.S. cents, up from
C$1.0340 to the U.S. dollar, or 96.71 U.S. cents, at Thursday's
close.
 "There were steady offers in dollar/Canada overnight in
conjunction with the improvement (of risk sentiment), most
notably out of Europe with the German IFO, which was ahead of
expectations," said Jack Spitz, managing director of foreign
exchange at National Bank Financial.
 The Ifo German business climate survey helped ease some of
the concerns over the global economy recovery that had been
revived by data on Thursday showing new claims for U.S.
employment benefits rose last week. [MKTS/GLOB]
 Unconfirmed talk of Japan intervening in the market to
weaken the yen for the second time this month created
volatility overnight.
 However, the Canadian currency was largely within the range
covered in the past two weeks, mostly in the C$1.0250-C$1.0350
area with a few forays to try and break the range on either
side.
 Improved confidence in the global economy put some pressure
on Canadian government bonds, cutting into gains made
recently.
 The two-year government of Canada bond edged down 1
Canadian cent to yield 1.420 percent, while the 10-year bond
slipped 14 Canadian cents to yield 2.853 percent.
 With no Canadian data is on tap on Friday, market watchers
may be influenced by U.S. data, which is expected to show
durable goods orders for August fell 1.0 percent while new home
sales at are expected to rise slightly last month.  ECONUS
 (Reporting by Ka Yan Ng; Editing by Theodore d'Afflisio)