September 14, 2010 / 12:18 PM / 10 years ago

CANADA FX DEBT-C$ little changed ahead of U.S. data

 * C$ at 97.32 U.S. cents, awaits U.S. retail sales data
 * Bond prices flat to higher across curve
 By Jennifer Kwan
 TORONTO, Sept 14 (Reuters) - The Canadian dollar traded
largely flat against the U.S. currency on Tuesday as the market
awaited U.S. retail sales data for further clues on the health
of economic recovery.
 At 7:45 a.m. (1145 GMT), the Canadian currency CAD=D3 was
at C$1.0275 to the U.S. dollar, or 97.32 U.S. cents, a hair
lower compared to Monday's close at C$1.0273 to the U.S.
dollar, or 97.34 U.S. cents.
 U.S. stock index futures and oil prices, both of which
usually provide direction for the currency, were flat to softer
as investors awaited August retail sales due at 8:30 a.m. [.N]
 Investors will look to see if the report substantiates
recent better-than-expected data that tempered worries the
economy could fall back into recession. [ECONUS]
 "Consumer spending is obviously a very important part of a
sustainable U.S. recovery," said Matthew Strauss, senior
currency strategist at RBC Capital Markets.
 "Although we know it's going to be on the soft side,
hopefully it will show positive numbers. That would further
allay or address the fears of a double-dip in the U.S."
 Otherwise, Strauss said there was a slightly risk-off bias
in the market following weak economic gauges out of Europe. The
euro fell against the dollar while euro zone bond prices gained
as a sharp fall in German investor morale suggested the
recovery in Europe's largest economy is poised to lose
momentum. [ID:nDEP003349]
 Bank of Canada Governor Mark Carney is expected to give a
speech later on Tuesday. However, market watchers doubt he will
provide fresh insight into monetary policy thinking in Canada,
said Strauss.
 He added next key technical ranges to monitor include
C$1.0249 to the U.S. dollar and C$1.0306.
 Canadian bond prices were higher on Tuesday, following U.S.
Treasuries which climbed after the weak German economic
sentiment survey and reallocation into bonds ahead of U.S.
retail sales data. [US/]
 The two-year Canada bond was largely flat, up 1 Canadian
cent to yield 1.453 percent, while the 10-year bond rose 10
Canadian cents to yield 3.073 percent.
 (Reporting by Jennifer Kwan; Editing by Theodore d'Afflisio)

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