February 3, 2009 / 2:53 PM / 11 years ago

CANADA FX DEBT-C$ bounces off one-week low; risk aversion wanes

 TORONTO, Feb 3 (Reuters) - The Canadian dollar got a sudden
boost versus the U.S. greenback in choppy trade on Tuesday,
moving off a one-week low seen overnight, as a rebound in U.S.
stock futures fueled an appetite for riskier assets.
 But the move did not cause much excitement as traders said
they expect erratic moves ahead of key jobs reports due from
Canada and the United States on Friday, which are both expected
to show the economies continued to shed jobs in January.
 "It's really just an across the board selloff in the U.S.
dollar that seems to be taking on some early momentum," said
Jack Spitz, managing director of foreign exchange at National
Bank of Canada.
 "But I think this market is subject to relatively choppy
and whippy price fluctuations and the move down below (C$1.24)
doesn't really negate the risk aversion tone that's likely to
be the dominant bias between now and the labor numbers."
 At 9:35 a.m. (1535 GMT), Canada's dollar was at C$1.2390 to
the U.S. dollar, or 80.71 U.S. cents, up from Monday's close of
C$1.2436 to the U.S. dollar, or 80.41 U.S. cents,
 That was 1 percent above the overnight low of C$1.2522 to
the U.S. dollar, or 79.86 U.S. cents, which marked its lowest
level since Jan. 23.
 (Reporting by Frank Pingue; Reporting by Jeffrey Hodgson)

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