CANADA FX DEBT-C$ gets a slight boost as greenback sags
* C$ higher at 97.68 U.S. cents
* Bonds firmer across curve
By Jennifer Kwan
TORONTO, Sept 27 (Reuters) - Canada's dollar edged higher against the U.S. currency on Monday, supported by firm oil and gold prices due in part to a generally weaker greenback.
Oil prices ticked higher toward $77 a barrel, while gold prices powered to a record high at $1,300 an ounce on Monday with investors piling money into the precious metal in part on the possibility of further quantitative easing by the U.S. Federal Reserve to stimulate growth. [O/R] [GOL/]
"The U.S. dollar is still very heavy so that's probably the main thing that is helping the Canadian dollar," said Shane Enright, executive director, foreign exchange sales at CIBC World Markets,
"The market is concerned about more quantitative easing from the Fed going forward. That's really what's weighing on the U.S. dollar for the most part."
The U.S. central bank stirred markets last week by expressing greater concern about sluggish U.S. growth and low levels of inflation in a statement that many took as opening the door wider to pumping more dollars into the economy. For details, see [ID:nTRU002490] [ID:nN20109053]
At 8:15 a.m. (1215 GMT), the Canadian dollar was at C$1.0238 to the U.S. dollar, or 97.68 U.S. cents, up from Friday's finish at C$1.0256 to the U.S. dollar, or 97.50 U.S. cents.
Also supportive for the currency was higher U.S. stock index futures, which were firmer on Monday following four weeks of gains for Wall Street as investors eyed a series of merger-and-acquisition deals, a sign that companies are seeing value in the market. [.N]
Canadian bond prices were slightly higher across the curve, tracking U.S. Treasuries on Monday. [US/] The two-year Canada bond was 2 Canadian cents higher to yield 1.461 percent, while the 10-year bond rose 18 Canadian cents to yield 2.845 percent. (Reporting by Jennifer Kwan, Editing by Chizu Nomiyama)
© Thomson Reuters 2017 All rights reserved.