November 10, 2011 / 2:49 PM / 9 years ago

CANADA FX DEBT-C$ boosted by trade data, global markets

 * C$ higher at C$1.0178 vs US$, or 98.25 U.S. cents
 * Surprise Sept trade surplus pushes C$ to session high
 * Bonds lower across the curve
 By Jennifer Kwan
 TORONTO, Nov 10 (Reuters) - The Canadian dollar got a lift
on Thursday after Canada posted a surprise trade surplus in
September, while global stocks, commodity and currency markets
stabilized on easing euro zone concerns.
 A surge in energy exports helped Canada post an unexpected
trade surplus of C$1.246 billion ($1.22 billion) in September,
the first of its kind since January 2011, Statistics Canada
data indicated. [ID:N1E7A90DQ]
 Market operators had predicted a deficit of C$570 million
after a revised C$487 million deficit in August.
 The rise in exports suggests a pick up in consumption,
predominantly from the States, which would be seen as a
positive for Canadian economic growth.
 "It's a contributing factor to a market that is already
entering North America on a bit more of a positive note --
compression in yields with respect to Italy, the lack of
notably political or newsworthy disruptions," said Jack Spitz,
managing director of foreign exchange at National Bank
 "The market is looking a bit more optimistic and that
optimism has reflected itself in overall offers to the U.S.
dollar with the Canadian dollars attracting some bids."
 At 9:17 a.m. (1417 GMT), the Canadian dollar CAD=D4 was
at C$1.0178 versus the greenback, or 98.25 U.S., after hitting
a session high of C$1.0168.
 On Wednesday, it closed at C$1.0217 or 97.88 U.S. cents.
 The move higher on Thursday followed a 1.3 percent drop the
day before on signs Italian borrowing costs reached a breaking
point after Prime Minister Silvio Berlusconi's insistence on
elections instead of an interim government opened the way to
prolonged instability. [ID:nL6E7M93EM]
 The euro rose on Thursday while world stocks held above a
three-week trough on hopes new governments being formed in
Italy and Greece could help fend off a euro zone break up.
 Canadian government bond prices fell alongside  U.S.
Treasuries, which dropped as global markets stabilized and on
better-than-expected U.S. jobless claims data. [US/]
 The two-year Canadian government bond CA2YT=RR edged 6
Canadian cents lower to yield 0.933 percent, while the 10-year
bond CA10YT=RR dropped 45 Canadian cents to yield 2.138
 ($1=$1.02 Canadian)
 (Editing by Jeffrey Hodgson)

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