July 6, 2009 / 12:03 PM / 11 years ago

CANADA FX DEBT-C$ down on commodities, global economic woes

 By Frank Pingue
 TORONTO, July 6 (Reuters) - The Canadian dollar moved off a
one-month low but remained weaker against the U.S currency on
Monday morning following a slide in commodity prices and
nagging concerns about the global economic recovery.
 At 7:50 a.m. (1150 GMT), the Canadian unit was at C$1.1658
to the U.S. dollar, or 85.78 U.S. cents, down from C$1.1617 to
the U.S. dollar, or 86.08 U.S. cents, at Friday's close.
 Trading was thin last week because of national holidays in
both Canada and the United States, with some of the currency's
latest move blamed on last Thursday's weak U.S. jobs data,
which dampened hopes that the global economy is poised to
 "There's just a diminishing appetite for risk," said Adam
Cole, global head of FX strategy at RBC Capital Markets in
London. "And there is a lot of nervousness in the wake of the
payrolls number and also heading into the earnings season in
the U.S., which starts this week."
 Also weighing on Canada's currency was a slide in commodity
prices, including oil's drop to a five-week low, which proved
enough to convince investors to move out of perceived riskier
assets like the Canadian currency.
 During the overnight session the domestic currency touched
its lowest level since March 18 when it fell to C$1.1680 to the
U.S. dollar, or 85.62 U.S. cents.
 Canadian bond prices were little changed across the curve
alongside similar moves in the bigger U.S. treasury market.
 (Editing by Padraic Cassidy)

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