CANADA FX DEBT-C$ eases on stronger US$, cheaper oil

Fri Mar 27, 2015 9:51am EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

* Canadian dollar at C$1.2495 or 80.03 U.S. cents
    * Bond prices mostly higher across the maturity curve

    TORONTO, March 27 (Reuters) - The Canadian dollar softened
against a rebounding greenback on Friday as oil prices fell, but
a lack of domestic economic data or other significant news kept
moves modest.
    Canada is a major oil producer and its currency had risen on
Thursday as oil prices jumped on news of an air strike in Yemen
by Saudi Arabia and its allies, with market participants
concerned over crude supplies in the region. Also lifting the
loonie was a speech by Bank of Canada Governor Stephen Poloz
that was less dovish than the market had expected.
    "The situation in the Middle East is less volatile than
people were thinking yesterday," said Charles St-Arnaud, senior
economist and strategist with Nomura Securities in London.
    Meanwhile, the U.S. dollar started showing signs of strength
on Thursday and on Friday it rose broadly on signals by the U.S.
Federal Reserve that it is still preparing to hike interest
rates this year. 
    At 9:31 a.m. (1331 GMT), the Canadian dollar was at
C$1.2495 to the greenback, or 80.03 U.S. cents, weaker than
Thursday's close of C$1.2471, or 80.19 U.S. cents.
    With little news to dictate moves, market focus turned to a
slew of U.S. data due next week, as well as January economic
growth numbers for Canada set to be released on Tuesday.
    St-Arnaud said the Canadian gross domestic product numbers
will likely be "horrible" and that the loonie would probably
weaken further.
    Canadian government bond prices were mostly higher across
the maturity curve, with the two-year up 1.5 Canadian
cents to yield 0.581 percent and the benchmark 10-year
 rising 11 Canadian cents to yield 1.418 percent.

 (Reporting by Solarina Ho; Editing by Peter Galloway)