CANADA FX DEBT-C$ edges up ahead of GDP data

Fri Apr 30, 2010 8:13am EDT
 
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 * C$ at C$1.0047 or 99.53 U.S. cents
 * Bonds mixed across the curve
 By Claire Sibonney
 TORONTO, April 30 (Reuters) - The Canadian dollar rose
slightly against its U.S. counterpart on Friday as commodity
prices strengthened and expectations Greece will soon receive
emergency aid helped to ease fears about how Athens will pay
its debts.
 But trading was mostly range-bound as currency markets held
their breath ahead of a reading of Canada's February gross
domestic product and first-quarter U.S. figures, both due at
8:30 a.m. (1230 GMT).
 "The Canadian GDP is bit a dated and it's the monthly so
perhaps people will discount it but it's always has the ability
to move things if the number comes in far off the expected 0.3
percent month over month," said Sacha Tihanyi, a currency
strategist at Scotia Capital.
 For the U.S., the median Reuters forecast is for
first-quarter growth of 3.4 percent, down from 5.6 percent
growth in the fourth quarter of 2009.
  At 7:56 a.m. (1156 GMT), the Canadian dollar CAD=D4 was
at C$1.0047 to the U.S. dollar, or 99.53 U.S. cents, slightly
higher than Thursday's finish at C$1.0054 to the U.S. dollar,
or 99.46 U.S. cents. Earlier, the currency touched a high of
C$1.0015 to the U.S. dollar, or 99.85 U.S. cents.
 "The Canadian dollar is holding in quite well in recent
sessions despite some weakness and now with easing of fears in
Europe on the potential announcement of an austerity package
and money being given to Greece, it's really the euro show
today," Tihanyi added.
 The euro extending gains against the greenback as sources
familiar with the Greece aid talks said officials were expected
to announce details of the multi-billion-euro package by
Monday.[FRX/]
 In addition, oil prices rose towards $86 and gold hit a
2010 high, which also could boost Canada's commodity-linked
currency. [O/R] [GOL/]
 Tihanyi said markets remain focused on the Canadian
dollar's parity level against the U.S. currency.
 "After the big move on Tuesday, we're just kind of making
that ground back up and that's probably going to be constrained
somewhat."
 Canada's dollar shot to one-for-one footing with the U.S.
currency on Tuesday after the Bank of Canada abandoned its
conditional commitment to keep rates steady until the end of
June.
 Canadian bond prices were mixed across the curve as U.S.
Treasuries traded sideways ahead of the GDP data and relative
calm in the euro zone debt market also keeping prices stable.
[US/]
 The two-year Canadian government bond CA2YT=RR was up 7
Canadian cents to C$99.165 to yield 1.965 percent, while the
10-year bond CA10YT=RR was 12 Canadian cents to C$98.120 to
yield 3.726 percent.
  (Reporting by Claire Sibonney; Editing by Theodore
d'Afflisio)
claire.sibonney@reuters.com; +1 416 941 8142; ReutersMessaging:
claire.sibonney.reuters.com@reuters.net))
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FOR CANADIAN MARKETS NEWS, CLICK ON CODES IN BRACKETS:
Canadian dollar and bonds report....[CAD/][CA/]
TSX market report..........[.TO]
Headlines from global forex markets ...[FXNEWS]
Bank of Canada stories.....[BOC]
Bank of Canada weekly t-bill auction...[CA/BIL]
Bank of Canada securities auctions.....[CA/AUC]
Bank of Canada interest rate story.....[CA/INT]
Reuters monthly Canadian dollar poll..FOREXPOLL33 [CAD/POLL]
Canadian interest rate poll...........[CA/POLL]
Reuters G7 quarterly economy poll....[ECILT/CA]
Weekly economic data poll..............[ECI/CA]
Reuters global stocks poll (Canada)...EQUITYPOLL5 [EPOLL/CA]
New Canadian debt issues..............[CAN-TNC]
Top News: Canada ......[TOP/CAN]
Today in Canada.......[CA/DIARY]
Canadian debt and money news ....[D-CAN][M-CAN]
FOR CANADIAN MARKETS DATA, CLICK ON CODES IN BRACKETS:
Real-time Canadian economic RICS.......ECONCA
Canadian dollar quote............CAD=CAD=D3
Canadian bonds quote.......<0#CABMK=><0#CATSY=>CDBNCABONDT
Canadian money market quote...CDMN<0#CAMMKT=>
New Canadian debt issues............NEWISSUFH
Canada-Treasury spread rates........<CA/SPREAD>
Canadian Debt and Forex speed guide...........<CA/DEBT><CAD/1>
Canadian Equities speed guide.......<CA/EQUITY>
S&P/TSX Composite index ...............GSPTSE
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  Nikkei 225..............N225  Tokyo report............[.T]
  FTSE 100................FTSE  London report...........[.L]
  Xetra DAX..............GDAXI  Frankfurt market stories[.F]
  CAC-40...FCHI  Paris market stories...[.PA]
  World Indices.......<0#.INDEX>
  Global markets report.............[MKTS/GLOB]
  Foreign exchange........[FRX/]
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  Oil.......[O/R]
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