CANADA FX-Canadian dollar ticks up with risk assets favored

Tue Apr 26, 2011 8:31am EDT
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 * C$ rises to C$0.9531 vs US dollar, or $1.0492
 * Oil, U.S. stock futures up ahead of Fed meeting
 By Claire Sibonney
 TORONTO, April 26 (Reuters) - The Canadian dollar crept
higher against its shaky U.S. counterpart on Tuesday as oil and
other riskier assets advanced, but gains were limited ahead of
a closely watched U.S. Federal Reserve policy meeting.
 Oil bounced from early losses on low trading volumes, while
U.S. stock index futures rose ahead of a big day for bellwether
corporate earnings. [O/R] [.N]
 The euro rose to a 16-month high against an under-pressure
dollar, climbing around half a percent to $1.4653, with
expectations the Fed will keep monetary policy loose likely to
see it hover near recent peaks. [FRX/]
 "Risk is still remaining reasonably well supported and
that's keeping dollar/CAD pinned largely to the downside," said
Jeremy Stretch, head of currency strategy at CIBC World Markets
in London. He cautioned that direction was vulnerable to thin
liquidity in another holiday-shortened week.
 At 8:11 a.m. (1211 GMT), the Canadian dollar CAD=D4 stood
at C$0.9531 to the U.S. dollar, or $1.0492, little changed from
Monday's North American finish at C$0.9546 to the U.S. dollar,
or $1.0476.
 Stretch said that retesting the psychological barrier of
C$0.9500 could open the way through C$0.9455, the 3-1/2 year
low hit last week, though any pullback in commodity prices and
nervousness about the broader risk rally could be negative for
the Canadian dollar.
 The Fed's meeting is expected to give no hint of tightening
and markets are more focused on a news conference by Chairman
Ben Bernanke on Wednesday, which is the first regularly
scheduled briefing by a Fed chief in the central bank's 97-year
history. [ID:nN20193559]]
 "As far as the Fed is concerned, I think it will be more
interesting to see how Mr. Bernanke keeps under the scrutiny of
a press conference rather than necessarily the decision
itself," said Stretch.
  (Editing by Padraic Cassidy)