CANADA FX DEBT-C$ up on steady stocks, upbeat central bank
By Jennifer Kwan
TORONTO, July 24 (Reuters) - The Canadian dollar strengthened against the U.S. currency on Friday, boosted as equity and commodity markets were steady and lingering euphoria following the Bank of Canada's mostly rosy economic outlook.
The Canadian dollar rose as much as C$1.0798 to the U.S. dollar, or 92.61 U.S. cents. At 9:14 a.m. (1314 GMT), the Canadian dollar was at C$1.0808 to the U.S. dollar, or 92.52 U.S. cents, up from Thursday's finish at C$1.0865 to the U.S. dollar, or 92.04 U.S. cents.
"The real big story is ... the Bank of Canada's take on the economy that we're going to be the first out of the recession if we're not already," said Firas Askari, head of foreign exchange trading at BMO Capital Markets.
"The fact that they have a much more optimistic outlook for the Canadian economy really differentiates us from Europe and the United States."
The unit touched its highest level in seven weeks on Thursday after the Bank of Canada declared Canada's recession to be virtually over and raced ahead of a cautious central banker pack with a mostly upbeat view on the world economy. [ID:nN23196742]
More broadly, equity markets and crude oil prices have stabilized, and "Canada is a net beneficiary of that," added Askari, noting the next key level to watch out for is C$1.0780.
World stocks extended gains to 9-month highs on Friday, diminishing the desire for safer government bonds after better than expected euro zone economic data fueled optimism about economic recovery.
On Friday morning, the price of oil CLc1, a key Canadian export, was steady around $67 a barrel. [ID:nSIN277013]
Canadian bond prices were slightly lower across the curve, following the bigger U.S. Treasury market, which braced for a record wave of bond auctions next week. [ID:nN24450982] (Reporting by Jennifer Kwan; Editing by Padraic Cassidy)
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