July 24, 2009 / 1:46 PM / in 11 years

CANADA FX DEBT-C$ up on steady stocks, upbeat central bank

 By Jennifer Kwan
 TORONTO, July 24 (Reuters) - The Canadian dollar
strengthened against the U.S. currency on Friday, boosted as
equity and commodity markets were steady and lingering euphoria
following the Bank of Canada's mostly rosy economic outlook.
 The Canadian dollar rose as much as C$1.0798 to the U.S.
dollar, or 92.61 U.S. cents. At 9:14 a.m. (1314 GMT), the
Canadian dollar was at C$1.0808 to the U.S. dollar, or 92.52
U.S. cents, up from Thursday's finish at C$1.0865 to the U.S.
dollar, or 92.04 U.S. cents.
 "The real big story is ... the Bank of Canada's take on the
economy that we're going to be the first out of the recession
if we're not already," said Firas Askari, head of foreign
exchange trading at BMO Capital Markets.
 "The fact that they have a much more optimistic outlook for
the Canadian economy really differentiates us from Europe and
the United States."
 The unit touched its highest level in seven weeks on
Thursday after the Bank of Canada declared Canada's recession
to be virtually over and raced ahead of a cautious central
banker pack with a mostly upbeat view on the world economy.
 More broadly, equity markets and crude oil prices have
stabilized, and "Canada is a net beneficiary of that," added
Askari, noting the next key level to watch out for is
 World stocks extended gains to 9-month highs on Friday,
diminishing the desire for safer government bonds after better
than expected euro zone economic data fueled optimism about
economic recovery.
 On Friday morning, the price of oil CLc1, a key Canadian
export, was steady around $67 a barrel. [ID:nSIN277013]
 Canadian bond prices were slightly lower across the curve,
following the bigger U.S. Treasury market, which braced for a
record wave of bond auctions next week. [ID:nN24450982]
 (Reporting by Jennifer Kwan; Editing by Padraic Cassidy)

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