May 19, 2011 / 12:45 PM / 9 years ago

CANADA FX DEBT-C$ edges up guardedly with oil price

 * C$ edges up to C$0.9670 to the U.S. dollar, or $1.0341
 * Bond prices lower as risk sentiment
 TORONTO, May 19 (Reuters) - The Canadian dollar edged
higher against the U.S. dollar on Thursday, buoyed by rising
oil prices, while a firmer tone to stock markets pushed bond
prices lower.
 North American equity futures pointed to a higher open,
following a positive session in their overseas counterparts and
after stronger-than-expected earnings results from Dell
DELL.O helped investors pick up bargains in technology
 At 8:32 a.m. (1232 GMT), the Canadian dollar CAD=D4 was
at C$0.9670 to the U.S. dollar, or $1.0341, up moderately from
Wednesday's North American session finish at C$0.9706 to the
U.S. dollar, or $1.0303.
 Canada's two-year bond CA2YT=RR fell 2 Canadian cents to
yield 1.696 percent, while the 10-year bond CA10YT=RR was off
9 Canadian cents to yield 3.233 percent.
 "Risk appetite is a little firmer," said Sal Guatieri,
senior economist at BMO Capital Markets, pointing to generally
stronger commodity prices and the price of oil CLc1, which
had edged back above $100 a barrel.
 Canada is a major exporter of oil and other commodities and
its currency is often influenced by moves in their prices.
 Oil had slumped in the past two weeks and the
commodity-linked Canadian dollar weakened with it.
 The currency may be vulnerable as oil prices are likely to
stay volatile on concerns about economic recovery in the United
States and unresolved sovereign debt issues in the euro zone.
 Market watchers will keep an eye on Bank of Canada
officials who have speaking engagements on Thursday. Governor
Mark Carney will participate in a panel in Washington DC on
"Navigating Global Financial Risks".
 Timothy Lane, a deputy governor, is speaking in Vancouver
at the Canadian Pensions and Benefits Institute on "The
Changing Face of Risk in the Global Financial System."
 Otherwise, market players expect trading to be quiet ahead
of Friday, when Statistics Canada releases inflation data for
April and retail sales data for March.
 The figures are among the last before the Bank of Canada's
next interest rate decision on May 31, when it is expected to
stand pat at 1 percent.
 (Reporting by Ka Yan Ng; Editing by James Dalgleish)

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