CANADA FX DEBT-C$ ticks higher as global equities steady

Tue Jun 30, 2009 8:01am EDT
 
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 TORONTO, June 30 (Reuters) - The Canadian dollar crept
higher against the U.S. dollar on Tuesday morning, drawing
support from steady global equities on lingering investor
optimism recent efforts to jumpstart the economy may be
working.
 World stocks .MIWD00000PUS looked set on Tuesday for its
best quarterly gain since its 1988 launch fueled largely by
recovery talk in recent months. [ID:nLU711192]
 At 7:48 a.m. (1148 GMT), the Canadian dollar was at
C$1.1526 to the U.S. dollar, or 86.76 U.S. cents, up from
Monday's finish at C$1.1567 to the U.S. dollar, or 86.45 U.S.
cents.
 The currency was slightly stronger following lackluster
trade in the previous session given the moves in the oil and
equity markets, said David Bradley, director of foreign
exchange trading at Scotia Capital.
 "I think it's playing a little bit of catch up," he said.
 The Canadian dollar drifted lower against the U.S. dollar
on Monday in a quiet rangebound session, unable to benefit from
a rally in oil prices.
 Bradley also said he expected "liquidity to dry up over the
course of the week" given there are two market holidays.
 Oil prices CLc1, a key Canadian export that often
influences the direction of the currency, was relatively flat.
Oil was up slightly around $71.67 a barrel, paring gains made
earlier in the session. [ID:nSP479412]
 The only domestic data due later on Tuesday morning was
Canadian GDP data, expected to show economic contraction with a
0.1 percent fall in April after a 0.3 percent decline in March.
However, Bradley said that reading was expected to have little
impact on the currency.
 Canadian bond prices were largely lower, moving in unison
with U.S. Treasuries where prices eased in Europe on Tuesday as
stock index futures pointed to a firmer start on Wall Street.
[ID:nLU183342]
 (Reporting by Jennifer Kwan; Editing by Theodore d'Afflisio)