CANADA FX DEBT-C$ pares losses after U.S. GDP, eyes Bernanke

Fri Aug 27, 2010 9:49am EDT
 
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   * C$ down at 94.41 U.S. cents
 * Bond prices lower
 * All eyes on Bernanke, confidence index
 (Updates with U.S. GDP data)
 TORONTO, Aug 27 (Reuters) - Canada's dollar was lower
against the U.S. currency on Friday morning, but firmed
slightly as a reading on U.S. economic growth came in a touch
better than expected, relieving investors somewhat ahead of a
speech from Federal Reserve Chairman Ben Bernanke.
 U.S. economic growth was revised down to a sluggish 1.6
percent annual rate in the second quarter compared to analysts'
predictions of 1.4 percent. [ID:nN26193565]
 With the growth data out, the market was bracing for the
Fed chairman. Bernanke's speech is expected to shed light on
whether the Fed will support the economy with fresh injections
of cash. [ID:nN27251934]
 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 9:34 a.m. (1335 GMT), the Canadian dollar CAD=D4 was
at C$1.0592 to the U.S. dollar, or 94.41 U.S. cents, down from
C$1.0567 to the U.S. dollar, or 94.63 U.S. cents, at Thursday's
close.
 The two-year bond CA2YT=RR was down 1 Canadian cent to
yield 1.267 percent, while the 10-year bond CA10YT=RR fell
32 Canadian cents to yield 2.829 percent.
 (Reporting by Ka Yan Ng and Claire Sibonney; Editing by
Jeffrey Hodgson)