CANADA FX DEBT-C$ creeps up as stocks, commodities advance
* C$ rises to 96.82 U.S. cents
* Bonds prices mostly flat
By Claire Sibonney
TORONTO, July 29 (Reuters) - The Canadian currency edged higher against the greenback on Thursday, boosted by rising North American equity futures, firm commodity prices and broader U.S. dollar weakness.
The U.S. dollar hit a three-month low a day after weak durable goods data and a downbeat assessment of the economy from the Federal Reserve.
Currency players also took their cue from a report that a Moody's official said the U.S. government needs to provide a credible plan to address its rising debt profile in order to maintain its top-notch credit rating.
"The news that most people are talking about this morning is that Moody's has made some comments in London hours about how the U.S. government needs to articulate a credible fiscal plan and how the debt projections are realizing the rating review might have to come into play," said Firas Askari, head of foreign exchange trading at BMO Capital Markets.
"It's a bit of small shot across the bow about the U.S.'s triple-A rating, so the U.S. dollar has been sold across the board on that."
The Moody's official was interviewed by Dow Jones Newswires.
U.S. stock index futures were poised to rally following two days of declines for the S&P 500 after upbeat European economic data and ahead of an expected drop in U.S. jobless claims. [.N]
As well, oil was steady at around $77 after falling the previous day on the soft U.S. data and the biggest weekly increase in crude inventories for nearly two years in the United States. That could also affect the commodity-linked Canadian currency. [O/R]
At 8:13 a.m. (1213 GMT), the Canadian currency CAD=D4 was at C$1.0328 to the U.S. dollar, or 96.82 U.S. cents, up from Wednesday's finish at C$1.0385 to the U.S. dollar, or 96.29 U.S. cents.
"We're still in this range, we couldn't break through C$1.0260 and anywhere above C$1.0420 seems to be an area to sell U.S. and buy a little Canada short term," said Askari.
"But I'm having a hard time seeing how we're going to break out of this C$1.0150 to C$1.0850 range in the next few months, the same range we've been in for months."
On the domestic data calendar were industrial product and raw material price indexes.
Canadian bond prices were mostly flat, following the last sesssion's gains.
The Canadian two-year bond CA2YT=RR was up 1 Canadian cent to yield 1.591 percent, while the 10-year bond CA10YT=RR gained 10 Canadian cents to yield 3.230 percent.
(Reporting by Claire Sibonney; Editing by Frank McGurty)
© Thomson Reuters 2017 All rights reserved.