CANADA FX DEBT-C$ firm as euro zone fears ease, commodities rise

Mon Mar 29, 2010 9:29am EDT
 
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 * C$ up 0.5 percent against the greenback
 * U.S. dollar broadly weaker as concern about Greece eases
 * Commodities higher on weaker greenback
 TORONTO, March 29 (Reuters) - The Canadian dollar rose
against the U.S. dollar on Monday as concerns about debt
problems in the euro zone eased, helping to boost investor
demand for commodity linked currencies.
 The U.S. dollar was broadly weaker, with the euro supported
by an agreement late last week by euro zone leaders on a
financial safety net for Greece. <FRX/>
 "There is some relief now that there is a plan for the EU
to support some of its weaker members" said Camilla Sutton, a
currency strategist at Scotia Capital.
 Commodities, which are generally priced in U.S. dollars,
benefited from the weaker greenback, and in turn helped boost
the Canadian dollar.
 At 8:35 a.m. (1235 GMT), the Canadian dollar was at
C$1.0214 to the U.S. dollar, or 97.90 U.S. cents, up about 0.5
percent from Friday's finish at C$1.0267 to the U.S. dollar, or
97.40 U.S. cents.
 Greece launched a highly-anticipated sovereign bond issue
on Monday to refinance its ballooning debts.
 It opened its book on a seven-year benchmark euro bond with
a price guidance around mid-swaps plus 310 basis points, lead
managers said. [ID:nWLB1118]
 There are no major Canadian economic data releases on
Monday, so the currency will likely be influenced by moves in
the U.S. dollar and in commodities like oil, natural gas, and
gold, which are major Canadian exports.
 Oil was headed toward $81 early Monday, supported by the
weaker dollar and positive data, including higher euro zone
sentiment. [ID:nSGE62S07A] <O/R>
 Gold XAU= hit its highest in more than a week, rising as
high as $1,112.65 an ounce. <GOL/>
 The next major Canadian data is Wednesday, with the
seasonally adjusted gross domestic product for January.
ECONCA
 With global equity markets on the rise, Canadian bond
prices were mostly softer, though there were some gains in the
short end.
 The two-year government bond CA2YT=RR ticked 1 Canadian
cent higher to C$99.64 to yield 1.693 percent, while the
10-year bond CA10YT=RR fell 12 Canadian cents to C$101.35 to
yield 3.576 percent.
 (Reporting by John McCrank; Editing by Jeffrey Hodgson)