CANADA FX DEBT-C$, bonds in holding pattern ahead of U.S. data

Fri Aug 27, 2010 8:17am EDT
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   * C$ slips to 94.38 U.S. cents
 * Bond prices lower
 * All eyes on Bernanke, U.S. GDP, confidence index
 TORONTO, Aug 27 (Reuters) - Canada's dollar was softer
against the U.S. currency on Friday morning, while bonds were
lower across the curve, as investors awaited an update on the
U.S. economic outlook from U.S. Federal Reserve chairman Ben
 After a string of weak U.S. data this week, with a second
estimate of U.S. second-quarter gross domestic product and a
consumer sentiment index still to come on Friday, the market
was bracing for the Fed chairman to signal in a speech that the
U.S. economy is facing uncertain prospects.
 New merger and acquisition flows were also noted as
Australian toll-road operator Intoll Group ITO.AX has
recommended a A$3.4 billion takeover bid from Canada Pension
Plan Investment Board after Canada's second-biggest pension
manager slightly enhanced its earlier offer. [ID:nSGE67Q003]
 "The other commodity currencies are doing fairly well but
(the Canadian dollar) is underperforming. I think there was
some focus on the M&A deal from CPP buying Australia's Intoll
and that's weighed a little bit on Canada," said Camilla
Sutton, chief currency strategist at Scotia Capital.
 "The market's in a bit of a holding pattern waiting for
Bernanke's comments."
 At 8:05 a.m. (1205 GMT), the Canadian dollar CAD=D4 was
at C$1.0596 to the U.S. dollar, or 94.38 U.S. cents, down from
C$1.0567 to the U.S. dollar, or 94.63 U.S. cents, at Thursday's
 The two-year bond CA2YT=RR was down 1 Canadian cent to
yield 1.244 percent, while the 10-year bond CA10YT=RR fell
15 Canadian cents to yield 2.809 percent.
 (Reporting by Ka Yan Ng; Editing by Chizu Nomiyama)