CANADA FX DEBT-C$ gains; investors eye G20 summit

Fri Jun 25, 2010 8:16am EDT
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* C$ at C$1.0402 to U.S. dollar, or 96.14 U.S. cents

* Bond prices tick higher across curve

TORONTO, June 25 (Reuters) - Canada's dollar rose against the U.S. currency on Friday, supported by steady oil prices and higher U.S. stock index futures, but was expected to trade in a fairly tight range ahead of a summit of Group of 20 advanced and emerging nations.

At 7:57 a.m. (1157 GMT), the Canadian dollar was at C$1.0402 to the U.S. dollar, or 96.14 U.S. cents, slightly higher than Thursday's finish at C$1.0437 to the U.S. dollar, or 95.81 U.S. cents.

Supporting the unit's move higher were oil prices, a key Canadian export, and firmer bullion prices. Also, U.S. stock index futures signaled a higher open. [O/R] [GOL/] [.N]

Market players were expected to monitor developments at two international summits in Canada this week, with leaders of the Group of Eight and G20 nations coming together to discuss priorities for a world emerging from recession. [ID:nN18322198]

"There's a lot of headline risks from sideline comments and so I think the market is a bit worried about that," said Camilla Sutton, currency strategist at Scotia Capital.

Price action in the foreign exchange market was fairly subdued throughout most of the overnight session with a moderate leaning toward risk aversion, RBC Capital Markets said.

There was no single catalyst, but a combination of factors possibly at play include a sell-off in BP shares on news that the first storm of the Atlantic hurricane season may hamper efforts to clean up the oil spill, as well as rising Greek CDS spreads, RBC said, noting resistance at C$1.0470 to the U.S. dollar and support of C$1.0380.   Continued...