November 24, 2009 / 2:53 PM / 8 years ago

CANADA FX DEBT-C$ softer as oil dips, bounces from overnight low

 * C$ slightly softer around C$1.0584 per US$
 * Market awaits minutes from Fed’s Nov. meeting
 * Bond prices hold higher across the curve
 By Frank Pingue
 TORONTO, Nov 24 (Reuters) - The Canadian dollar was lower versus the U.S. currency on Tuesday, hurt by a weaker oil price and soft equity markets, but some upbeat overseas data helped it bounce off an overnight low.
 Overnight the Canadian currency fell as low as C$1.0645 to the U.S. dollar, or 93.94 U.S. cents, on the heels of a rally on Monday that snapped four-session skid in the currency.
 It staged a rebound when a German business sentiment survey came in better than expected, reaching its highest level since August 2008, to offset concerns about the country’s banking sector. [ID:nGEE5AN19N]
 “The report came out stronger than expected and essentially caused a nice little rally in the euro which in turn generated some broader-based U.S. dollar weakness,” said George Davis, chief technical strategist at RBC Capital Markets.
 “Since then we’ve really been in a bit of a holding pattern where the market seems a little bit unsure as to whether it wants to try and continue to move lower or start to break back to the topside.”
 At 9:30 a.m. (1430 GMT), the Canadian unit was at C$1.0584 to the U.S. dollar, or 94.48 U.S. cents, down from C$1.0558 to the U.S. dollar, or 94.71 U.S. cents, at Monday’s close.
 The price of oil, a major Canadian export, dropped below $77 a barrel on Tuesday ahead of data expected to show crude inventories rose in the United States. [O/R]
 With no major Canadian data due until Friday’s currency account report for the third quarter, investors are expected to shift their focus to the U.S. Federal Reserve, which will release minutes of its Nov. 3-4 meeting at 2:00 p.m. (1900 GMT).
 Markets will look at the report for hints on when and how the Fed will draw down extraordinary economic support measures. The minutes also include economic projections.
 “People will be watching that for any clues as to what the Fed’s insight is into the economy as things unfold here,” said Davis. “It will certainly garner some interest but I think in terms of broader themes people will continue to focus on the equity markets.”
 Toronto’s main stock index was lower shortly after the opening bell on Tuesday as strength in banking stocks stemming from firm Bank of Montreal (BMO.TO) quarterly results were not enough to offset weakness in the weighty commodity-based groups. [.TO]
 Domestic bond prices were a touch higher across the curve as data that showed the U.S. economy grew slower than initially thought in the third quarter triggered demand for more secure assets like government debt.
 In its second reading of third-quarter GDP, the Commerce Department said the U.S. economy grew at a 2.8 percent annual rate, rather than the 3.5 percent pace it had estimated last month. [ID:nN23258482]
 In issuance news, the province of Ontario will sell at least 1 billion euros of a new 10-year benchmark bond, according to IFR, a Thomson Reuters service.
 The two-year bond CA2YT=RR was up 3 Canadian cents at C$100.03 to yield 1.235 percent, while the 10-year bond CA10YT=RR rose 7 Canadian cents to C$103.15 to yield 3.360 percent.  (Editing by Jeffrey Hodgson)  ((frank.pingue@thomsonreuters.com ; +1 416 941-8094; Reuters Messaging: frank.pingue.reuters.com@reuters.net)) ============================================================== FOR CANADIAN MARKETS NEWS, CLICK ON CODES IN BRACKETS: Canadian dollar and bonds report....[CAD/][CA/] TSX market report..........[.TO] Headlines from global forex markets ...[FXNEWS] Bank of Canada stories.....[BOC] Bank of Canada weekly t-bill auction...[CA/BIL] Bank of Canada securities auctions.....[CA/AUC] Bank of Canada interest rate story.....[CA/INT] Reuters monthly Canadian dollar poll..FOREXPOLL33 [CAD/POLL] Canadian interest rate poll...........[CA/POLL] Reuters G7 quarterly economy poll....[ECILT/CA] Weekly economic data poll......[ECI/CA][ECI/CI] Reuters global stocks poll (Canada)...EQUITYPOLL5 [EPOLL/CA] Top News: Canada ......[TOP/CAN] Today in Canada.......[CA/DIARY] Canadian debt and money news ....[D-CAN][M-CAN] FOR CANADIAN MARKETS DATA, CLICK ON CODES IN BRACKETS: Real-time Canadian economic RICS.......ECONCA Canadian dollar quote............CAD=CAD=D3 Canadian bonds quote..CDBN<0#CABMK=>CABONDT Canadian money market quote...CDMN<0#CAMMKT=> Canada-Treasury spread rates........<CA/SPREAD> Canadian Debt and Forex speed guide...........<CA/DEBT><CAD/1> Canadian Equities speed guide.......<CA/EQUITY> S&P/TSX Composite index ...............GSPTSE FOR MAIN GLOBAL MARKET DATA AND MARKET REPORTS:   FTSE Eurotop 300 ......FTEU3  European report .......[.EU]   Nikkei 225..............N225  Tokyo report............[.T]   FTSE 100................FTSE  London report...........[.L]   Xetra DAX..............GDAXI  Frankfurt market stories[.F]   CAC-40...FCHI  Paris market stories...[.PA]   World Indices.......<0#.INDEX>   Foreign exchange........[FRX/]   Oil.......[O/R]   US Treasuries........... [US/]   International bonds.....[EUB/]   Gold.........[GOL/X] or [GOL/]   CRB index of commodity futures.........[CRB/]   All spots FX=                           Tokyo spots AFX=   Europe spots EFX=                    Volatilities FXVOL=   Tokyo Forex market info from BOJ TKYFX   World central bank news [CEN]   Economic Forecasts...ECON      Official rates...[INT/RATE]   Forex Diary.......[MI/DIARY]     Top events........[M/DIARY]   Diaries...........[DIARY]   Diaries Index........[IND/DIARY]   Press Digests.....[PRESS]   Polls on G7 economies..[SURVEY/] 

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