CANADA FX DEBT-Risk sentiment, resources buoy C$ near 1-wk high
* C$ rises to 98.37 U.S. cents
* Bonds edge lower after U.S. home prices data
By Ka Yan Ng
TORONTO, March 30 (Reuters) - The Canadian dollar rose to a near one-week high against the U.S. dollar on Tuesday, buoyed by positive risk sentiment and firmer resource prices.
Commodity-linked currencies were strong performers overnight on the back of firmer base metal prices and on a rise in the price of oil, a major Canadian export.
A positive tone from world stocks, which edged closer to a 17-1/2-month peak, also lent support to the Canadian dollar. [MKTS/GLOB]
The currency reached a session high at C$1.0162 to the U.S. dollar, or 98.41 U.S. cents.
At 9:15 a.m. (1315 GMT) the Canadian dollar was at C$1.0166 to the U.S. dollar, or 98.37 U.S. cents, up from C$1.0207 to the U.S. dollar, or 97.97 U.S. cents, at Monday's close.
"I think it's the ever-familiar risk theme that's moving the markets in general," said George Davis, chief technical analyst at RBC Capital Markets.
"Right now at least, the market seems to be a little bit more amenable or positive towards risk and that's benefiting the Canadian dollar."
There was muted reaction to data that showed Canadian raw material prices unexpectedly rose in February. For more see [ID:nN30138137].
The next major Canadian data will come Wednesday, when seasonally adjusted gross domestic product figures for January will be released. Economists expect a 0.5 percent gain in GDP, adding weight to the view that the Canadian economy is in recovery. ECONCA
Analysts say domestic factors have highlighted the recovery and continues to be beneficial for the Canadian dollar, but global risk sentiment has kept the currency off the near-parity levels it visited about two weeks ago.
Canadian bond prices eased with global equity markets on the rise and data that showed U.S. home prices were up for an eighth straight month.
Prices of U.S. single-family homes rose in January and the annual rate moved the closest it has been to an increase in three years, Standard & Poor's/Case Shiller home price indexes showed. [ID:nNYS007876]
The two-year government bond CA2YT=RR slipped 3 Canadian cents to C$99.57 to yield 1.728 percent, while the 10-year bond CA10YT=RR lost 8 Canadian cents to C$101.30 to yield 3.582 percent. (Editing by James Dalgleish)
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