CANADA FX DEBT-C$ in modest retreat amid soft North American data

Fri Aug 16, 2013 9:46am EDT
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TORONTO, Aug 16 (Reuters) - The Canadian dollar fell in
conjunction with its U.S. counterpart against major global
currencies Friday following a batch of lackluster North American
data, but overall trading was subdued and range-bound.
    Canadian manufacturing sales unexpectedly fell by 0.5
percent in June, falling short of forecasts that called for an
increase. This was the fourth drop in manufacturing sales - the
only domestic data this week - in six months and adds to
expectations of softer economic growth in June. 
    "The Canadian data (has been) uninfluential in pushing
USD/CAD away from what we see as the short-term, certainly
intraday range, of C$1.0300 to C$1.0350," said Jack Spitz,
managing director of foreign exchange at National Bank
    "Today we haven't yet seen the break-out type price action
... I don't think we will see one today."
    In the United States, U.S. housing starts and permits for
future home construction rose less than expected last month,
suggesting that higher mortgage rates could be hampering the
housing market's momentum. 
    "The data shapes the narrative with respect to the QE
tapering and the (U.S.) dollar represents the barometer," said
    At 9:18 a.m. EDT (1318 GMT), the Canadian dollar 
was trading at C$1.0343 versus the U.S. dollar, or 96.68 U.S.
cents, weaker than Thursday's close at C$1.0304, or 97.05 U.S.
    Prices for Canadian government debt were mostly lower across
the maturity curve. The two-year bond slipped 1.5
Canadian cents to yield 1.216 percent and the benchmark 10-year
bond fell 10 Canadian cents to yield 2.687 percent,
its highest yield in nearly two years.