October 29, 2009 / 2:59 PM / 11 years ago

CANADA FX DEBT-C$ lifted by U.S. economic data, commodities

 * C$ at C$1.0718 to the U.S. dollar
 * U.S. Q3 growth helps boost investor sentiment
 * Market eyes domestic GDP data due Friday
 * Bond prices stuck lower across curve
 (Adds details, quote)
 By Jennifer Kwan
 TORONTO, Oct 29 (Reuters) - The Canadian dollar edged
higher against the U.S. currency on Thursday morning, lifted by
firm commodity prices and U.S. economic data that soothed
worries about economic recovery.
 A report on Thursday showed the U.S. economy grew in the
third quarter for the first time in more than a year as
government stimulus helped lift consumer spending and home
building, fueling an unexpectedly strong advance.
 The currency, which rallied off a three-week low reached
overnight, also benefited from firmer North American equity
markets and a weaker greenback. [.N] [FRX/]
 "The biggest mover today was the GDP release from the
U.S.," said Camilla Sutton, currency strategist Scotia Capital.
"It has investors back into risk-seeking mode."
 The U.S. report helped to boost investor sentiment broadly
and lifted the price of oil to around $79 a barrel, added
Sutton, while gold prices were also higher. [O/R] [GOL/]
 "The impact toward currencies has been that the ones most
weighted toward the global recovery -- so the commodity
currencies -- are doing quite well," she said.
 At 10:41 a.m. (1441 GMT), the Canadian unit was at C$1.0718
to the U.S. dollar, or 93.30 U.S. cents, up from C$1.0785 to
the U.S. dollar, or 92.72 U.S. cents, at Wednesday's close.
 The turnaround in the currency helped lift it off an
overnight low of C$1.0822 to the U.S. dollar, or 92.40 U.S.
cents, which marked its lowest level since Oct. 5.
 Investors were also awaiting monthly Canadian GDP data, due
for release on Friday at 8:30 a.m. (1230 GMT). The numbers are
expected to show the economy grew 0.1 percent in August after
stagnating in July.
 "The market is waiting for the GDP numbers and ahead of it
we're seeing some risk appetite returning to the market," said
Matthew Strauss, senior currency strategist at RBC Capital
 "But it's more a result of the sharp selloff that we've
seen during the last few days rather than indicative of the
market willing to turn around."
 Domestic bond prices were down across the curve alongside a
similar move in the bigger U.S. Treasury market, where debt
prices fell on Thursday on the U.S. GDP report. [US/]
 The two-year bond CA2YT=RR slipped 4 Canadian cents to
C$99.58 to yield 1.458 percent, while the 10-year bond
CA10YT=RR fell 23 Canadian cents to C$102.20 to yield 3.477
 (Additional reporting by Frank Pingue; editing by Rob Wilson)

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