CANADA FX DEBT-C$ firms on rising commodities, weaker greenback

Mon Apr 25, 2011 8:47am EDT
 
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 * C$ rises to C$0.9514 vs U.S. dollar, or $1.0511
 * Bond prices track U.S. Treasuries higher
 * Gold hits record high, U.S. oil nears $113 a barrel
 By Claire Sibonney
 TORONTO, April 25 (Reuters) - The Canadian dollar edged up
against a broadly weaker U.S. dollar on Monday as commodity
prices soared and higher-yielding assets were bid after North
American markets reopened following the long Easter holiday
weekend.
 Spot gold hit a record high above $1,518 an ounce and
silver surged 5 percent to top $49 an ounce, moving closer to
its 1980 all-time peak, lifted by a weak U.S. dollar. [GOL/]
 U.S. crude prices approached $113 a barrel, buoyed by an
escalation of violence in the oil-producing Middle East and
post-election unrest in OPEC member Nigeria. [O/R]
 "All things are pointing for Canada to continue to do
better, but I think it's just going to be a flow-driven session
more than anything else today," said Steve Butler, director of
foreign exchange trading at Scotia Capital.
 Butler said liquidity was lighter than usual, given the
Easter Monday holiday across much of Europe.
 At 8:26 (1226 GMT), the Canadian dollar CAD=D4 stood at
C$0.9514 to the U.S. dollar, or $1.0511, up slightly from
Thursday's North American finish at C$0.9537 to the U.S.
dollar, or $1.0485. It was a softer after reaching its highest
level in three and a half years. Most North American markets
were closed on Friday for the Easter holiday.
 "We probably need to get a close below C$0.95 to get a
little more of that momentum back," said Butler.
 Beyond the C$0.95 level, analysts say there are few
technical barriers in the way of all-time highs for the
Canadian dollar.
 The highlight of the week's events is the expected news
conference by Federal Reserve Chairman Ben Bernanke on
Wednesday after the bank's two-day policy meeting.
[ID:nN20193559]
 Canadian bonds closely tracked U.S. Treasury prices higher
as market players look to the Fed for signs it will not rush to
shrink its huge balance sheet, though buying was kept to a
minimum before a series of auctions.
 The two-year bond CA2YT=RR rose 3 Canadian cents to yield
1.793 percent, while the 10-year bond CA10YT=RR climbed 17
Canadian cents to yield 3.270 percent.
  (Editing by Padraic Cassidy)