CANADA FX DEBT-Risk sentiment, resources buoy C$ near 1-wk high

Tue Mar 30, 2010 9:50am EDT
 
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   * 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)