CANADA FX DEBT-C$ firms ahead of White House meeting
* C$ at $1.0006 vs US$, or 99.94 U.S. cents
* White House meeting set to discuss "fiscal cliff"
* Foreigners increased purchase of Canadian securities in Sept
By Solarina Ho
TORONTO, Nov 16 (Reuters) - The Canadian dollar strengthened to near parity with the U.S. dollar on Friday ahead of a meeting between U.S. President Barack Obama and congressional leaders to discuss the U.S. fiscal crisis.
Market sentiment was slightly more hopeful that the United States would be able to defuse the "fiscal cliff" crisis following a Wall Street Journal report that said White House officials were in advanced internal discussions that could indicate increased flexibility on reaching a deal with Republican leaders.
Equity markets have been mired in negative territory for much of the last two weeks with investors worried that if no deal is reached on the large, automatic budget cuts and tax hikes set to begin next year, the U.S. economy could slip into recession.
"There's very little in the way of macro risks, particularly locally in Canada ... that leaves us watching the Obama meeting on the fiscal cliff later on today," said Adam Cole, global head of FX strategy at Royal Bank of Canada in London.
Cole said any suggestion that the negotiating parties were having difficulty reaching a compromise would be negative for risk appetite and bullish for the U.S. dollar. Continued...