CANADA FX DEBT-C$ weakens slightly ahead of data deluge

Thu Nov 1, 2012 8:02am EDT
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* C$ at C$1.0002 versus US$, or $0.9998
    * String of data on tap, payrolls on Friday
    * Weak GDP data weighs on sentiment

    By Alastair Sharp
    TORONTO, Nov 1 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Thursday as signs of a shrinking
domestic economy weighed, while traders looked ahead to a string
of data for further direction.
    At 7:45 a.m. (1145 GMT) the Canadian dollar was
trading at C$1.0002 to the greenback, or $0.9998, compared with
C$0.9990, or $1.0010, at Wednesday's North American close.
    The currency felt some pressure after weak gross domestic
product data pointed to slower growth in the third quarter. 
    "The moves overnight were fairly minor ... but for the day
ahead there's a big focus on U.S. data," said Greg Moore, a
foreign exchange strategist at TD Securities.
    That U.S. data includes a private measure of employment and
a government reading of unemployment claims, productivity and
labor cost data, manufacturing and construction numbers and a
delayed index of consumer confidence.
    "However the bigger focus will still be on Friday's
employment reports from both the U.S. and Canada. We usually see
a quiet day ahead of that," Moore said.
    Canada's commodity-linked currency seemed to brush off signs
that China's economy perked up in October. 
    The price of government debt was flat to lower across the
curve, with the two-year bond was off 1 Canadian cent
to yield 1.077 percent, while the benchmark 10-year bond
 fell 10 Canadian cents to yield 1.794 percent.