October 26, 2009 / 11:57 AM / in 11 years

CANADA FX DEBT-C$ edges lower, commodity prices cushion drop

 * C$ eases to C$1.0530 to the U.S. dollar
 * Commodity prices help cushion fall
 * Bond prices flat across the curve
 By Frank Pingue
 TORONTO, Oct 26 (Reuters) - Canada's dollar added to recent
losses and was slightly lower versus the U.S. currency early on
Monday, but lofty prices for key Canadian exports like oil and
goldits cushioned its pullback.
 The Canadian currency took a hit last week after the Bank
of Canada and Governor Mark Carney warned the currency's rally
toward parity with the greenback is a risk to growth and
discussed the possibility of intervention. [ID:nN22502163]
 "Obviously Carney's comments and the Bank of Canada
statement have taken a little bit of wind out of the sail of
the Canadian dollar near term," said Firas Askari, head of
foreign exchange trading at BMO Capital Markets.
 "But at the end of the day though, the things that were
driving the Canadian dollar are still there."
 Helping to keep the domestic currency from falling further
was a backdrop of steady commodity prices. Oil retreated from
last week's one-year high but held near $80 a barrel, while
gold prices held above $1.050 an ounce. [O/R] [GOL/]
 At 7:40 a.m. (1140 GMT), the Canadian unit was at C$1.0530
to the U.S. dollar, or 94.97 U.S. cents, down from C$1.0519 to
the U.S. dollar, or 95.07 U.S. cents, at Friday's close.
 Domestic bond prices, with no Canadian data to consider
until later this week, were flat to slightly lower across the
curve alongside a similar move in the U.S. Treasury market.
 (Editing by Theodore d'Afflisio)

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