CANADA FX DEBT-C$ slips along with oil as greenback rebounds

Fri May 15, 2015 9:40am EDT
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* Canadian dollar at C$1.2043 or 83.04 U.S. cents
    * Bond prices higher across the maturity curve

    TORONTO, May 15 (Reuters) - The Canadian dollar retreated
against a broadly higher U.S. dollar on Friday, as crude prices
fell amid an excess supply of oil that has pushed global
inventories higher.
    The greenback, hurt by a series of mixed economic data,
recouped some of the week's losses against a basket of key
currencies, despite further U.S. economic numbers on Friday that
supported evidence the second quarter was off to a sluggish
start for the world's largest economy.
    The loonie pared some of its losses following Canadian data,
including March factory sales, but moves were marginal and
    The currency has tested the C$1.1940 level several times in
recent sessions, but has failed to sustain any moves stronger.
    * At 9:27 a.m. EDT (1327 GMT), the Canadian dollar 
was trading at C$1.2043 to the greenback, or 83.04 U.S. cents,
softer than the Bank of Canada's official close of C$1.1999, or
83.34 U.S. cents, on Thursday.
    * Its strongest level of the session was C$1.1982, while its
weakest level was C$1.206.
    * Canadian manufacturing sales rebounded by 2.9 percent in
March from February, helped by gains in the aerospace and auto
sectors. This was stronger than the 1.2 percent rise economists
had forecast. 
    * Foreign investment in Canadian securities jumped to
C$22.47 billion in March, the biggest inflow since May 2012.
    * In the United States, manufacturing activity growth in New
York State accelerated to 3.09 in May from -1.19 in April.
Despite the improvement, economists had been expecting a rise to
5.0 this month. 
    * U.S. industrial production fell for a fifth straight
month, slipping 0.3 percent after a revised 0.3 percent drop in
March. Economists were expecting a 0.1 percent rise.
    * U.S. crude prices were down 1.70 percent to $58.86,
while Brent crude lost 1.17 percent to $65.92. 
    * The Canadian dollar will likely trade between C$1.1980 and
C$1.2075 against the U.S. dollar on Friday, according to
National Bank Financial.
    * Canadian government bond prices were higher across the
maturity curve, with the two-year price up 0.5
Canadian cent to yield 0.669 percent and the benchmark 10-year
 rising 40 Canadian cents to yield 1.761 percent.
    * The Canada-U.S. two-year bond spread was 11.3 basis
points, while the 10-year spread was -43.9 basis points.

 (Reporting by Solarina Ho; Editing by Bernadette Baum)