September 14, 2011 / 12:22 PM / 9 years ago

CORRECTED - CANADA FX DEBT-C$ cuts losses as euro, shares rise

 (Corrects support level in 6th paragraph to C$0.9950, not
 * C$ at C$0.9879 vs US$ or $1.0122
 * Bond prices fall across curve
 By Claire Sibonney
 TORONTO, Sept 14 (Reuters) -  The Canadian dollar dipped
against the U.S. dollar on Wednesday but losses were limited by
healthier risk appetite reflected in a bounce in the euro and
European shares after some positive news for the region's debt
 The European Commission said it would soon present options
for the introduction of euro area bonds, a development
investors saw as a significant step despite German opposition
to the idea. [ID:nL3E7KE1P9]
 "The developments out of Europe continue to be the most
meaningful influence in currency valuations," said Jack Spitz,
managing director of foreign exchange sales at National Bank
 "Overlooked in the broader scheme of things, Canada is
trading marginally lower than its close yesterday but it's
still not trading with the bid to dollar/Canada that took it
above parity earlier on in the week."
    At 7:56 a.m. (1156 GMT), the Canadian dollar stood at
C$0.9879 to the U.S. dollar, or $1.0122 U.S. cents, down from
Tuesday's North American session close at C$0.9854 to the U.S.
dollar, or C$1.0148.
 Spitz noted support for the Canadian dollar between
C$0.9950 to par with the greenback and resistance around its
overnight high of C$0.9845.
 North American data including domestic capacity
utilization, U.S. producer prices, retail sales and business
inventories will be watched for further direction in the
 Canadian bond prices were lower across the curve.
 The two-year bond CA2YT=RR was down 4 Canadian cents to
yield 0.963 percent, while the 10-year bond CA10YT=RR shed 27
Canadian cents to yield 2.230 percent.
 (Reporting by Claire Sibonney)

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