CANADA FX DEBT-C$ slips as crude softens, greenback rebounds

Thu Jun 11, 2015 9:40am EDT
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* Canadian dollar at C$1.2297, or 81.32 U.S. cents
    * Bond prices higher across the maturity curve

    TORONTO, June 11 (Reuters) - The Canadian dollar softened
against the greenback on Thursday, with a stronger U.S. currency
and a cloudy economic forecast from the World Bank dampening the
price of oil.
    The U.S. dollar recouped some of Wednesday's losses against
a basket of currencies as optimistic investors positioned
themselves ahead of U.S. retail sales data, which came in
slightly better than expected. Weekly U.S. jobless claims ticked
up more than expected, however, but remained at a healthy level.
    Market participants have been focused on U.S. economic data
to help guide expectations on when the Federal Reserve might
resume raising interest rates. Recent numbers have suggested
that a 2015 rate hike is likely, with many eyeing September.
    Overseas, the New Zealand dollar sank to a five-year low
against the greenback after the Reserve Bank of New Zealand
surprised markets with an interest rate cut and suggested more
easing could follow. 
    * At around 9:28 a.m. EDT (1328 GMT), the Canadian dollar
 was at C$1.2297 to the greenback, or 81.32 U.S. cents,
weaker than Wednesday's close of C$1.2262, or 81.55 U.S. cents.
    * The currency has traded between C$1.2253 and C$1.2355 so
far in the session.
    * In Canada, industrial capacity use dropped to 82.7 percent
in the first quarter from 83.5 percent the previous quarter,
pulled lower in part by weaker manufacturing. 
    * New home prices in Canada edged up 0.1 percent in April
from March, in line with expectations, despite a second
consecutive month of declines in Calgary, which has been hurt by
the struggling energy sector. 
    * U.S. crude was down 60 cents at $60.83 a barrel,
while Brent crude oil for July shed 51 cents to trade at
$65.19 a barrel. The World Bank forecast in its Global Economic
Prospects report that the global economy would expand by 2.8
percent this year, below its 3 percent January outlook. 
    * Canadian government bond prices were higher across the
maturity curve, with the two-year rising 3.6 Canadian
cents to yield 0.684 percent and the benchmark 10-year
 gaining 41 Canadian cents to yield 1.862 percent.

 (Reporting by Solarina Ho; Editing by Meredith Mazzilli)