CANADA FX DEBT-C$ little changed on euro, equities

Tue Sep 13, 2011 8:44am EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

 *C$ little changed at C$0.9919 vs US$ or $1.0082
 *Bonds prices slip as risk appetite recovers
 By Claire Sibonney
 TORONTO, Sept 13 (Reuters) -  The Canadian dollar held
above parity against the U.S. dollar on Tuesday but was little
changed from the previous session's close in see-saw trading
that tracked volatile European markets.
 Investors continued to worry that European policymakers had
no plan to stem the region's debt crisis as speculation that
China would support Italy by buying its government debt proved
to be short-lived.
 However, sentiment seemed to be shifting to more positive
territory after the sharp global selloff on Monday, when
markets feared Greece was on the tipping point of default.
 "There's a little bit of buoyancy going on here as we're
seeing an uplift in the euro," said C.J. Gavsie, managing
director of foreign exchange sales at BMO Capital Markets.
 "It's a bit of the same story playing out, we tend to get
very heightened concern, particularly yesterday morning (when)
Greece was definitely at the forefront of the situation ... but
until we actually see some sort of follow-through of what the
market is potentially anticipating here we're not seeing the
prices really move."
 At 8:28 a.m. (1228 GMT), the Canadian dollar stood at
C$0.9919 to the U.S. dollar, or $1.0082 U.S. cents, just one
tick stronger than Monday's North American session close at
$0.9920 to the U.S. dollar, or C$1.0081.
 Gavsie noted there was near-term Canadian-dollar resistance
around C$0.9880 and support in the C$0.9965-75 area.
 On Monday the Canadian dollar broke below parity for the
first time in over a month to touch its weakest level since
January.
Canadian bond prices on Tuesday drifted lower as risk
appetite recovered somewhat.
 The two-year bond CA2YT=RR was down 6 Canadian cents to
yield 0.906 percent, while the 10-year bond CA10YT=RR lost 20
Canadian cents to yield 2.165 percent.
 (Reporting by Claire Sibonney; Editing by Theodore d'Afflisio)