CANADA FX DEBT-C$ eases ahead of G20, oil, stocks eyed

Thu Sep 24, 2009 9:56am EDT
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 * C$ at 92.88 U.S. cents
 * Bonds mixed
 * G20 meeting in focus
 TORONTO, Sept 24 (Reuters) - The Canadian dollar eased
against the U.S. currency on Thursday in cautious trade ahead
of the Group of 20 summit, with weaker oil prices and volatile
equity markets expected to make for choppy trading.
 The spotlight is on the Group of 20 nations meeting on
Thursday in Pittsburgh. Among major issues expected to be
discussed will be the need to examine strategies for
withdrawing economic stimulus measures as well as global
imbalances. [ID:nLH78576]
 At 9:40 a.m. (1440 GMT), the Canadian currency was at
C$1.0767 to the U.S. dollar, or 92.88 U.S. cents, down from
C$1.0751 to the U.S. dollar, or 93.01 U.S. cents, at
Wednesday's close.
 "It will really be a mix of reaction to equity markets,
commodity markets. The markets will be very keen to understand
what the G20 has got to say about global imbalances," said Jack
Spitz, managing director of foreign exchange at National Bank
 The price of oil extended the previous session's decline,
falling below $68 a barrel, while North American stocks opened
mildly higher. The Canadian dollar often tracks the direction
of equity and resource prices as a reflection of risk
 The Canadian dollar is expected by many analysts to be
choppy but within a well-defined range until it can sustain a
break beyond the high last week at C$1.0591, or weaken beyond
C$1.11, the mid-July low.
 Canadian bond prices were mixed on Thursday, with
short-dated issues lower and long-dated issues edging up as
investors absorbed lower-than-expected U.S. weekly jobless
claims data and ahead of a U.S. auction of $29 billion of
seven-year notes.
 The two-year bond CA2YT=RR was off 3 Canadian cents at
C$99.45 to yield 1.290 percent, while the 10-year bond
CA10YT=RR rose 3 Canadian cents to C$102.78 to yield 3.409
percent. The 30-year bond CA30YT=RR gained 10 Canadian cents
to C$118.10 to yield 3.922 percent.
 Canadian bonds mostly outperformed their U.S. counterparts,
except in the two-year maturity.
 (Reporting by Ka Yan Ng; Editing by Jeffrey Hodgson)