CANADA FX DEBT-C$ tilts lower as commodity prices decline

Wed Jul 29, 2009 9:06am EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

 * C$ backs off Tuesday's near 10-month high
 * Lower commodity prices weighing on C$
 * Bond prices higher across the curve
 By Frank Pingue
 TORONTO, July 29 (Reuters) - Canada's dollar was a touch
softer versus the U.S. currency on Wednesday morning given a
turnaround in prices for key domestic exports like oil and
gold.
 The lower start to the session pulled Canada's currency
further from the near 10-month high it shot to on Tuesday, but
the latest move lower lacked conviction and did not cause much
concern among market experts.
 "Right now it seems to me that you've got a market that's
searching for direction," said Eric Lascelles, chief economics
and rates strategist at TD Securities.
 "But in the near term there have been some arguments for
softness, we're seeing a bit of better economic news in the
U.S. and we're getting a pretty notable decline in oil."
 Oil prices dropped below $66 a barrel as U.S. data showed
an unexpected rise in crude inventories [ID:nSP480296], while
gold prices fell as risk aversion sent investors into the U.S.
dollar. [ID:nLT428253]
 At 9:00 a.m. (1300 GMT), the Canadian unit was at C$1.0863
to the U.S. dollar, or 92.05 U.S. cents, down from C$1.0831 to
the U.S. dollar, or 92.33 U.S. cents, at Tuesday's close.
 Canadian bond prices, with no domestic data to consider
until later in the week, followed the bigger U.S. Treasury
market higher across the curve ahead of what is expected to be
a lower open for North American equities.
 Data due for release in Canada on Thursday is expected to
show a rise of 0.3 percent in producer prices for June, while
raw materials prices for June are expected to rise 3.0
percent.
 (Editing by Chizu Nomiyama)