May 12, 2009 / 1:07 PM / 11 years ago

CANADA FX DEBT-C$ gets boost after domestic trade data

 * C$ rallies as high as 86.66 U.S. cents
 * Move triggered by strong trade data
 * Bond prices down across the curve
 By Frank Pingue
 TORONTO, May 12 (Reuters) - Canada's currency got a sudden
boost versus the U.S. dollar on Tuesday morning after domestic
data showed the trade surplus in March more than doubled what
the market had been expecting.
 The Canadian dollar rallied as high as C$1.1540 to the U.S.
dollar, or 86.66 U.S. cents, moments after the data, which put
if comfortably above C$1.1658 to the U.S. dollar, or 85.78 U.S.
cents, at Monday's close.
 The boost in the currency followed a report that showed the
trade surplus in March rose to C$1.11 billion, due largely to
lower energy imports. [ID:nN11501985]
 But by 8:55 a.m. (1255 GMT), the Canadian dollar retreated
slightly to C$1.1577 to the U.S. dollar, or 86.38 U.S. cents,
and was unable to crack through the six-month high it hit
during Monday's North American session.
 "Definitely good results for the trade, not outrageously
good ... data is not having as material an impact as it had in
the past but certainly a little bit positive," said Steve
Butler, director of foreign exchange trading at Scotia
 Butler said he feels the Canadian dollar has some catching
up to do when compared to other commodity-linked currencies
like the Australian and New Zealand dollars.
 Domestic bond prices were lower across the curve,
relinquishing gains made during the previous session, as the
data left investors with less interest in more secure assets
like government debt.
 (Editing by Jeffrey Hodgson)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below