August 20, 2009 / 1:43 PM / 11 years ago

CANADA FX DEBT-C$ tilts slightly lower after two-session rally

 * C$ at C$1.0986 to the U.S. dollar
 * Canada June wholesale trade up 0.6 pct
 * Longer-dated bond prices rise
 By Frank Pingue
 TORONTO, Aug 20 (Reuters) - Canada's dollar was slightly
lower versus the U.S. currency on Thursday morning but held in
a tight range as the latest North American data fanned concerns
about the economic recovery.
 A report that showed the number of U.S. workers filing new
claims for jobless benefits rose unexpectedly last week added
to concerns about the strength of the recovery and lessened
demand for riskier assets. [ID:nN20510281]
 Still, the Canadian currency managed to keep from falling
too far as it continued to draw support from lofty prices for
oil, a major Canadian export, after its 4 percent rally on
Wednesday. [ID:nSIN485135]
 "Seem to be stuck in a bit of a range and we're scratching
around for some direction," said Shaun Osborne, chief currency
strategist at TD Securities.
 "I generally think Canada can do a little bit better here
after the price action we've seen this week but it's all in the
context of the bigger (U.S.) dollar story."
 Canada's currency fell to a one-month low on Monday but
after two straight higher closes it is now up up about 0.1
percent for the week.
 At 9:25 a.m. (1325 GMT), the Canadian unit was at C$1.0986
to the U.S. dollar, or 91.02 U.S. cents, down from C$1.0956 to
the U.S. dollar, or 91.27 U.S. cents, at Wednesday's close.
 Canadian bond prices were mixed as the lack of any key
Canadian economic data left dealers awaiting direction from
North American stocks.
 Figures on Thursday showed wholesale trade rose for the
first time in nine months in June, up 0.6 percent from May on
higher sales of automotive products. [ID:nN20510314]
 The long end of the curve was up slightly, tracking a gain
in the bigger U.S. Treasury market, which rose on data that
showed the U.S. labor market remains in deep trouble.
 The two-year Canadian bond was down 36 Canadian cents at
C$99.09 to yield 1.459 percent, while the 10-year bond rose 3
Canadian cents to C$102.85 to yield 3.404 percent.
 The 30-year bond was up 40 Canadian cents at C$118.85 to
yield 3.884.
 (Editing by Peter Galloway)

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