CANADA FX DEBT-C$ turns lower as risk appetite fades

Fri Oct 30, 2009 7:45am EDT
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 * C$ falls as low as C$1.0703 per US$
 * Canadian GDP data for August eyed
 * Bond prices lower across the curve
 By Frank Pingue
 TORONTO, Oct 30 (Reuters) - Canada's dollar was slightly
lower versus the U.S. currency on Friday given a general lack
of appetite for riskier assets that also has North American
equities poised for a soft open.
 The Canadian currency fell as low as C$1.0703 to the U.S.
dollar, or 93.43 U.S. cents, overnight. It recovered slightly
but remained lower on the day as equities were seen giving back
some of the gains recorded on Thursday.
 "Today we are basically reacting with just about everybody
else to the general market sentiment," said Firas Askari, head
of foreign exchange trading at BMO Capital Markets. "And right
now it looks like equities are going to open up slightly down
based off futures so you saw the Canadian dollar sell off."
 U.S. stock index futures dipped on Friday, a day after the
market logging its best percentage gain in three months, as
investors await data that will shed light on consumer
sentiment. [ID:nN30401504]
 Askari said Canadian GDP data for August, due out at 8:30
a.m. (1230 GMT), would not have much currency impact since it
is an August number. The report is expected to show Canada's
economy grew 0.1 percent in August after stagnating in July.
 At 7:30 a.m. (1130 GMT), the Canadian unit was at C$1.0688
to the U.S. dollar, or 93.56 U.S. cents, down from C$1.0670 to
the U.S. dollar, or 93.72 U.S. cents, at Thursday's close.
 Domestic bond prices were higher across the curve alongside
a similar move in the bigger U.S. Treasury market, recovering
some of the slide recorded in the previous session.
 (Editing by Chizu Nomiyama)