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631305c700bc63eb214303fa45aee076
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https://www.reuters.com/article/markets-canada-currency-bonds-idCAL1N0TZ10S20141215?edition-redirect=ca
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CANADA FX DEBT-C$ breaches C$1.16 as crude's retreat hits harder
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CANADA FX DEBT-C$ breaches C$1.16 as crude's retreat hits harder
By 0 Min Read
* Canadian dollar at C$1.1595 or 86.24 U.S. cents * Bond prices mixed across the maturity curve By Solarina Ho TORONTO, Dec 15 (Reuters) - The Canadian dollar fell through C$1.16 to the U.S. dollar on Monday, touching its weakest level in 5-1/2 years as crude prices hit new multiyear lows. The Organization of the Petroleum Exporting Countries reaffirmed on Sunday its intention not to cut output despite a global fuel glut, reasoning that any output reduction would have little impact on price but would mean ceding market share. Canada is a major exporter of crude and the loonie's fortunes have tracked those of the oil price since it started dropping in June, with the Canadian currency falling to levels not seen since July 2009. "Last week, we saw Canada begin to post losses against some of the other majors and that was for the first time in quite some time," said Brad Schruder, director, foreign exchange sales, at BMO Capital Markets. "There's now talk of $45 oil, which I think is a little bit aggressive at the moment, but if this trend continues, I wouldn't be surprised if you saw USD/CAD hovering near just shy of C$1.20." At 9:59 a.m. (1459 GMT), the Canadian dollar was at C$1.1595 to the greenback, or 86.24 U.S. cents, weaker than Friday's close of C$1.1572, or 86.42 U.S. cents. Earlier, it touched C$1.1606, or 86.16 U.S. cents. "If you need to buy U.S. dollars you most certainly need to err on the side of caution in these last couple of weeks of the year because the storm is upon us," Schruder said. He added, however, that a C$1.20 loonie would likely be the trend for January, not December. All eyes will be on the U.S. Federal Reserve on Wednesday to see how oil's retreat fits into the central bank's decision-making. A slew of Canadian economic data, including inflation figures for November on Friday, will also be in focus, but Schruder said that given the influence of oil prices, the figures will be heavily discounted by the market. Canadian government bond prices were mixed across the maturity curve with shorter-term treasury bills higher and longer-term bonds lower. The two-year was down 3.5 Canadian cents to yield 0.98 percent and the benchmark 10-year was off 27 Canadian cents to yield 1.787 percent. (Reporting by Solarina Ho; Editing by Peter Galloway)
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12e5198469e40e9849d8a2319035ef11
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https://www.reuters.com/article/markets-canada-currency-bonds-idCAL1N0UN2FZ20150108?edition-redirect=ca
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CANADA FX DEBT-C$ fall blunted as oil snaps losing streak
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CANADA FX DEBT-C$ fall blunted as oil snaps losing streak
By 0 Min Read
(Adds closing figures, comment and details) * Canadian dollar at C$1.1836 or 84.49 U.S. cents * Bond prices mixed across the maturity curve By Solarina Ho TORONTO, Jan 8 (Reuters) - The Canadian dollar was modestly weaker against its U.S. counterpart on Thursday as oil prices stabilized on better than expected U.S. economic data and falling U.S. crude stockpiles. Global oil prices were little changed, with Brent crude just above $50 a barrel, after tumbling more than 50 percent since June as Saudi Arabia and other oil-producing countries have resisted production cuts despite excess supply and waning demand. Canada is a major crude exporter, and the Canadian dollar has been highly sensitive to the sharp price declines. "After really holding its own in late December ... the first couple of days of the year we saw (the Canadian dollar) give that up," said Amo Sahota, director at Klarity FX in San Francisco, noting the correlation between the moves of oil and the loonie is at its strongest in quite some time. Market participants have been searching for a bottom for oil prices and many think the pause in crude's fall will be short-lived. "(Forty-dollar oil) would mean more Canadian dollar weakness," Sahota said. "We just think the current pace of Canadian dollar weakness is over-extended." The Canadian dollar, which retreated more than 1.5 percent since the new year to 5-1/2 year lows, closed at C$1.1836 to the greenback, or 84.49 U.S. cents. That was weaker than Wednesday's finish of C$1.1820, or 84.60 U.S. cents. In the latest sign of a strong U.S. economy, the number of Americans filing new claims for unemployment benefits fell last week and job cuts declined sharply in December, suggesting a tightening labor market. Camilla Sutton, chief currency strategist at Scotiabank, noted that the strength of the greenback has been a dominant factor in the currency market. "All in all CAD's been pushed and pulled by market trends," she said. "There's still a lot of U.S. dollar strength as the overarching theme for most currencies. Canada is just hovering in between." Investors were also awaiting employment figures for December for the United States and Canada, which are due on Friday. Forecasters polled by Reuters expected 15,000 new jobs in Canada with the unemployment rate unchanged at 6.6 percent. Canadian government bond prices were mixed across the maturity curve with longer-term maturities falling. The two-year fell 3 Canadian cents to yield 0.982 percent and the benchmark 10-year declined 45 Canadian cents to yield 1.706 percent. (Reporting by Solarina Ho; Editing by Peter Galloway)
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03c2e12d64d5f6cd07972f28ae9d8975
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https://www.reuters.com/article/markets-canada-currency-bonds-idCAL1N0VG13I20150206?edition-redirect=ca
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CANADA FX DEBT-C$ weakens as strong U.S. jobs figures signal Fed rate rise
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CANADA FX DEBT-C$ weakens as strong U.S. jobs figures signal Fed rate rise
By 0 Min Read
* C$ at C$1.2465, or 80.22 U.S. cents * Bond prices lower across the curve By Alastair Sharp TORONTO, Feb 6 (Reuters) - The Canadian dollar weakened slightly on Friday after both Canada and the United States released monthly employment data for January. Both headline figures were strong, but the gain of 257,000 jobs in the United States, as well as rising wages there, left traders adding to bets that the U.S. Federal Reserve will begin raising interest rates by midyear. In Canada, rates are expected to decline. Canada added 35,400 jobs, far more than forecast, although the gains came on the back of more part-time positions, data showed. "I think the strong U.S. numbers keep some downward pressure on the Canadian dollar," said Paul Ferley, assistant chief economist at Royal Bank of Canada. "I think the Canadian employment numbers will probably sort of temper downside on the Canadian dollar, but I think the strong U.S. number has increased probability that the U.S. Fed will return to tightening mode sometime this year, and that will keep pressure on the Canadian dollar." The Canadian currency hit C$1.25, or 80 U.S. cents, soon after the reports were released, before settling at around C$1.2465, or 80.22 U.S. cents. It closed on Thursday at C$1.2424. "It's mildly supportive for the currency," said Doug Porter, Bank of Montreal's chief economist. "But, of course, it lands on the same day as we've got a very powerful U.S. report, especially with revisions, so I suspect that might outweigh this figure for the currency." Canadian government bond prices were lower across the maturity curve, with the two-year down 7.5 Canadian cents to yield 0.471 percent and the benchmark 10-year was down 18 Canadian cents to yield 1.385 percent. (Reporting by Alastair Sharp; Editing by Bernadette Baum; and Peter Galloway)
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ae6b0b5e7c310084e2d3cf2aea31c33e
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https://www.reuters.com/article/markets-canada-currency-bonds-idCAL1N0WB0O620150309?edition-redirect=ca
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CANADA FX DEBT-C$ stuck as weak housing data keeps pressure on
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CANADA FX DEBT-C$ stuck as weak housing data keeps pressure on
By 0 Min Read
* Canadian dollar at C$1.2595 to the greenback, or 79.40 * Bond prices higher across the maturity curve TORONTO, March 9 (Reuters) - The Canadian dollar was stuck around C$1.26 to its U.S. counterpart on Monday after a retreat at the end of last week, with a sharp fall in housing starts keeping the pressure on the currency. The seasonally adjusted house-building metric fell short of expectations, a move that may have been aggravated by severe winter weather. "The disappointment today in housing starts is indicative of overall concerns on the slowing of the pace of the housing market," said Greg Moore, senior currency strategist at Royal Bank of Canada. In North American morning trade the Canadian dollar was at C$1.2595 to the greenback, or 79.40 U.S. cents, slightly stronger than Friday's close of C$1.2610, or 79.30 U.S. cents. Moore says the currency could weaken to C$1.34 this year on further resource price weakness and monetary policy divergence. Canada is a major oil producer, and its central bank cut rates in January while the U.S. Federal Reserve is looking to hike. He said such a move would encounter stiff resistance around the C$1.30 level touched during the 2008 financial crisis. Canadian government bond prices were higher across the maturity curve, with the two-year up 7.5 Canadian cents to yield 0.586 percent and the benchmark 10-year up 53 Canadian cents to yield 1.557 percent. (Reporting by Alastair Sharp Editing by W Simon)
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753d6000d2e849121f558b91624ecc1b
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https://www.reuters.com/article/markets-canada-currency-bonds-idCAL2N0PE1XJ20140703?edition-redirect=ca
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CANADA FX DEBT-C$ recovers to touch six-month high
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CANADA FX DEBT-C$ recovers to touch six-month high
By 0 Min Read
* Canadian dollar at C$1.0639 or 93.99 U.S. cents * Bond prices mostly lower across the maturity curve (Recasts with the Canadian dollar turning higher, adds details, quotes, updates prices) By Leah Schnurr TORONTO, July 3 (Reuters) - The Canadian dollar strengthened against the greenback in a see-saw session on Thursday, extending its rally to a six-month high despite robust U.S. jobs figures that had taken the loonie lower earlier in the day. The Canadian dollar also got some help from data that showed that a resurgence in Canadian exports helped narrow the country's trade deficit to C$152 million ($143 million) in May. That report had been eclipsed earlier in the day by data that showed the U.S. economy added a greater-than-expected 288,000 jobs last month, boosting the U.S. dollar to the detriment of the loonie. But the Canadian dollar was able to resume its upward climb by midmorning, carried by the momentum that had led it to a 1.6 percent gain in June. "I think the Canadian dollar is clinging on to recent gains at the moment," said Lennon Sweeting, corporate dealer at USForex in San Francisco. But Sweeting said he doesn't expect that trend to persist. "In terms of economic data, you would definitely ascertain that the U.S. dollar-Canadian dollar should be a little higher than what it is at the moment," he said. "Although that bump this morning was short-lived, I think over the next couple weeks we'll see the U.S. dollar-Canadian dollar trend higher." . The Canadian dollar ended the North American session at C$1.0639 to the greenback, or 93.99 U.S. cents, stronger than Wednesday's close of C$1.0667, or 93.75 U.S. cents. The loonie's session high was C$1.0620, its highest level since early January. The Canadian dollar rallied in much of June, fueled in part by surprisingly strong domestic inflation figures. Investors are now turning their attention to how the Bank of Canada might address those figures in its monetary policy statement in mid-July. "If there's any pending weakness coming in the Canadian dollar, it would be for the Bank of Canada to try to replace their concerns about inflation with something else and see how that sits with the foreign exchange market," said Mark Chandler, head of Canadian fixed income and currency strategy at Royal Bank of Canada in Toronto. Canadian government bond prices were mostly lower across the maturity curve, though the two-year was unchanged to yield 1.135 percent. The benchmark 10-year was off 4 Canadian cents to yield 2.326 percent. Moody's Investors Service late on Wednesday assigned a "negative" outlook to Ontario's debt and issuer ratings, revised from "stable", but at the same time affirmed its Aa2 ratings. Moody's said the change in outlook reflects the rating agency's assessment of the risks surrounding the province's ability to meet its medium-term fiscal targets. The yield on 10-year Ontario bonds rose slightly, in line with Canadian government bond yields, to 3.156 percent. (Editing by Peter Galloway)
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50824caab4386a83837cb9ebfb47f9b5
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https://www.reuters.com/article/markets-canada-currency-bonds-idCAL2N0Q30ML20140728?edition-redirect=ca
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CANADA FX DEBT-C$ steadies after last week's sharp drop
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CANADA FX DEBT-C$ steadies after last week's sharp drop
By 0 Min Read
* Canadian dollar at C$1.0811 or 92.50 U.S. cents * Bond prices mostly lower across the maturity curve By Leah Schnurr TORONTO, July 28 (Reuters) - The Canadian dollar was little changed against the greenback on Monday, steadying after the previous session's sharp drop while investors positioned themselves ahead of some key economic reports on both sides of the border. Still, the currency stayed weaker than the C$1.08 level, which could lead to more downside after it fell through some significant technical levels on Friday. "The price action that we're seeing in the loonie this morning is seeing a bit of a bid but essentially unchanged, and that's just a pause from the big selloff we saw on Friday," said Scott Smith, senior market analyst at Cambridge Mercantile Group in Calgary. If this week's U.S. economic data comes in stronger than expected, it could provide enough momentum to send the loonie into the C$1.09s, Smith said. The Canadian dollar was at C$1.0811 to the greenback, or 92.50 U.S. cents, a tad stronger than Friday's close of C$1.0814 or 92.47 U.S. cents. After last week's relatively quiet domestic calendar, investors will get a look at more economic data in the coming days, including Canadian economic growth for May and producer prices for June. But the bigger focal point will be the United States this week, where markets will get the first reading of second-quarter growth figures and the July unemployment report, as well as a Federal Reserve meeting. The U.S. gross domestic product report could have the biggest impact on markets, with risk to the downside if the economy doesn't achieve the 3 percent growth rate economists forecast, Smith said. While that could hurt the U.S. dollar, it could be a benefit to the loonie. "If we do see something come in lower than expected, I don't think markets are necessarily prepared for that," he said. Canadian government bond prices were mostly lower across the maturity curve, with the two-year off 1 Canadian cent to yield 1.088 percent. The benchmark 10-year was unchanged to yield 2.120 percent, holding at a more than one-year low. (Editing by Peter Galloway)
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ec11c756ff9002a18cca5b9bb321ec86
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https://www.reuters.com/article/markets-canada-currency-bonds-idCAL2N0Q712S20140801?edition-redirect=ca
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CANADA FX DEBT-C$ steady as U.S. jobs data offers respite from retreat
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CANADA FX DEBT-C$ steady as U.S. jobs data offers respite from retreat
By 0 Min Read
* Canadian dollar at C$1.0909 or 91.67 U.S. cents * Bond prices higher across the maturity curve By Leah Schnurr TORONTO, Aug 1 (Reuters) - The Canadian dollar was little changed against the greenback on Friday, recovering from earlier declines after a weaker-than-expected U.S. jobs report, though the loonie was still on track to see its worst week since June. The loonie is down 0.8 percent for the week so far, and has declined in four out of five sessions, extending a selloff that started last Friday. The Canadian dollar touched an eight-week low in early morning trading, but managed to recoup much of the loss after data showed the U.S. economy added 209,000 jobs in July, a slower pace of jobs growth than the month before, while the unemployment rate rose to 6.2 percent from 6.1 percent. "It's definitely taken some of the heat off the U.S. dollar and helped the loonie out this morning," said Scott Smith, senior market analyst at Cambridge Mercantile Group in Calgary. Optimism that the U.S. recovery is picking up steam has sent investors running toward the greenback, one of the main reasons for the Canadian dollar's decline this week. The Canadian dollar was at C$1.0909 to the greenback, or 91.67 U.S. cents, slightly weaker than Thursday's close of C$1.0904, or 91.71 U.S. cents. Analysts expect the loonie still has further to fall, with many expecting to see it at the C$1.10 level in the near term. The recent declines have marked a reversal from a Canadian dollar rally that stretched through much of June. "One of the patterns of U.S. dollar-Canadian dollar over the last few years has been the loonie will, for a period of time, manage to grind out some pretty good gains," Smith said. "And when it flips around, and we start looking at the U.S. data, it seems like when the U.S. dollar gains strength, it does so in a rapid manner," Canadian government bond prices were higher across the maturity curve, with the two-year up 1-1/2 Canadian cents to yield 1.089 percent and the benchmark 10-year up 3 Canadian cents to yield 2.159 percent. (Editing by Peter Galloway)
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0612b899844f111829ad82a46220c63b
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https://www.reuters.com/article/markets-canada-currency-bonds-idCAL2N0S32BM20141008?edition-redirect=ca
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CANADA FX DEBT-C$ strengthens as Fed minutes sideswipe U.S. dollar
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CANADA FX DEBT-C$ strengthens as Fed minutes sideswipe U.S. dollar
By 0 Min Read
* Canadian dollar at C$1.1104, or 90.06 U.S. cents * U.S. dollar weakens on dovish Fed minutes * Bond prices mostly higher across the maturity curve (Updates to close) By Andrea Hopkins TORONTO, Oct 8 (Reuters) - The Canadian dollar strengthened nearly 1 percent against the U.S. dollar on Wednesday after minutes of the latest Federal Reserve policy meeting focused on the downside risks to the U.S. economy. The U.S. dollar lost ground against the Canadian currency, fell to a two-week low against the euro and trimmed gains versus the yen following the release of the dovish Fed minutes. "We had our big rally today, we started quite weak and now we've rallied almost a full percent, and that's really just a reaction to the Fed minutes," said Camilla Sutton, chief currency strategist at Scotiabank. "Traders have used it as a reason for profit taking on long U.S. dollar positions and the market was already fairly nervous." In minutes that suggested the U.S. central bank could take its time in raising interest rates, the Fed said a strong dollar could hurt some parts of the economy and slow the rise of inflation. The Canadian dollar ended the North American session at C$1.1104 to the greenback, or 90.06 U.S. cents, up from Tuesday's close at C$1.1171, or 89.52 U.S. cents. Domestically, Canadian housing starts rose in September, while the previous month was also revised slightly higher, according to a report from the Canada Mortgage and Housing Corp. Economists said the figures were broadly in line with forecasts, despite some concerns they could come in below expectations following Tuesday's disappointing building permits data. Sutton said investors are likely to see a period of stabilization of the U.S. dollar until it can find a new catalyst in economic data to give it back some strength. "For Canada, we get employment data on Friday, but really the U.S. data that is going to prove particularly important is anything that gives us a hint on inflation or employment," Sutton said. Canadian government bond prices were mostly higher across the maturity curve, with the two-year up 6 Canadian cents to yield 1.053 percent and the benchmark 10-year adding 15 Canadian cents to yield 2.012 percent. (Additional reporting by Solarina Ho; Editing by Chizu Nomiyama and James Dalgleish)
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e1f293d03f8b93bca2f7d1c58bb0b2c3
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https://www.reuters.com/article/markets-canada-currency-bonds-idCAL2N0T10PN20141111?edition-redirect=ca
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CANADA FX DEBT-C$ consolidates while oil prices weigh
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CANADA FX DEBT-C$ consolidates while oil prices weigh
By 0 Min Read
* Canadian dollar at C$1.1378 or 87.89 U.S. cents * Bond market closed for Remembrance Day By Leah Schnurr OTTAWA, Nov 11 (Reuters) - The Canadian dollar was little changed against the greenback on Tuesday, consolidating from the previous day's drop, while soft oil prices added some pressure on the loonie. Trading during the session was expected to be muted with the Canadian bond market closed for Remembrance Day. The Canadian dollar hit a more than five-year low last week but has managed to recoup some losses since. The currency is down about 1 percent since the start of November as it has been weighed by a drop in oil prices. Brent crude fell again on Tuesday and was most recently trading down 14 cents at $82.20 a barrel after earlier hitting its lowest level since October 2010. "Beyond today, the next week or two we may see a bit of a drift lower or at least a sideways move" in the U.S. dollar-Canadian dollar pairing, said Shaun Osborne, chief currency strategist at TD Securities in Toronto. "The price action we saw late last week does suggest that we've probably run a little bit high on the topside now, we're probably due for a small correction, at least." The Canadian dollar was at C$1.1378 to the greenback, or 87.89 U.S. cents, slightly weaker than Monday's close of C$1.1374, or 87.92 U.S. cents. Osborne expects the underlying trend for the U.S. dollar-Canadian dollar remains higher, which will mean more weakness for the loonie, with the currency pairing likely to trade well in the teens over the first half of next year. "I don't think we go much below C$1.12 right now," he said. "If we get anywhere close to C$1.12, I think that's probably going to attract the buyers again." (Editing by W Simon)
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bdf3bc23be021ed4abfe4ee9ee65b289
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https://www.reuters.com/article/markets-canada-currency-idCAL1N0V20WN20150123?edition-redirect=ca
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Canadian dollar firms after Canadian CPI, retail sales data
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Canadian dollar firms after Canadian CPI, retail sales data
By Reuters Staff1 Min Read
TORONTO, Jan 23 (Reuters) - The Canadian dollar strengthened against the U.S. dollar on Friday after Canadian CPI data showed an increase in core inflation.
The Canadian dollar, which had briefly weakened to a session low following the data, was trading at C$1.2393 against the U.S. dollar, or 80.69 U.S. cents. This was stronger than just prior to the data’s release and Thursday’s finish at C$1.2404, or 80.62 U.S. cents.
Reporting by Solarina HoOur Standards: The Thomson Reuters Trust Principles.
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a9a420df6531eeaf387841723a83c911
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https://www.reuters.com/article/markets-canada-currency-idCAL2N0TN0ZN20141203?edition-redirect=ca
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CANADA FX-Canadian dollar strengthens after Bank of Canada statement
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CANADA FX-Canadian dollar strengthens after Bank of Canada statement
By Reuters Staff1 Min Read
TORONTO, Dec 3 (Reuters) - The Canadian dollar strengthened to session high after the Bank of Canada said the country’s economic recovery was broadening, but cautioned that plunging oil prices was a risk.
The Canadian dollar touched C$1.1352 to the greenback, or 88.09 U.S. cents after the central bank statement, stronger than prior to the release and Tuesday’s close of C$1.1394, or 87.77 U.S. cents. (Reporting by Solarina Ho Editing by W Simon)
Our Standards: The Thomson Reuters Trust Principles.
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f663917eba933cb1135e5894c5e9f01c
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https://www.reuters.com/article/markets-canada-currency-idCAL2N0X70NB20150410?edition-redirect=ca
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CANADA FX-Canadian dollar pares losses after unexpected job gains
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CANADA FX-Canadian dollar pares losses after unexpected job gains
By Reuters Staff1 Min Read
TORONTO, April 10 (Reuters) - The Canadian dollar pared earlier session losses against the U.S. dollar on Friday after domestic employment figures showed the economy unexpectedly created jobs in March.
The Canadian dollar was trading at $1.2620 to the greenback, or 79.24 U.S. cents shortly after the data was released, stronger than just before the report, but still weaker than Thursday’s Bank of Canada close at C$1.2592, or 79.42 U.S. cents. (Reporting by Solarina Ho)
Our Standards: The Thomson Reuters Trust Principles.
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aab1f6c6b23148d2cea8d4fe496937f1
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https://www.reuters.com/article/markets-canada-dollar-bonds-idCAL1E8G415E20120504?edition-redirect=ca
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CANADA FX DEBT-C$ pauses ahead of U.S. jobs data
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CANADA FX DEBT-C$ pauses ahead of U.S. jobs data
By 0 Min Read
* C$ flat at C$0.9880 vs US$, or $1.0121 * Bond prices little changed By Claire Sibonney TORONTO, May 4 (Reuters) - Canada's dollar was little changed against the greenback on Friday as investors stayed on the sidelines ahead of a reading on the U.S. jobs market that could heighten concerns about the health of the world's biggest economy. U.S. employers likely increased hiring in April to add 170,000 workers to their payrolls, according to a Reuters survey of economists, up from March's meager print of 120,000, while the rise might not be enough to lower the country's 8.2 percent jobless rate. "Markets at this point are essentially frozen waiting for this number," said Blake Jespersen, managing director of foreign exchange sales at BMO Capital markets. "The Canadian dollar did weaken a little bit over the past day after the weaker ADP employment report so I would say expectations are for a slightly softer nonfarm payroll number." On Wednesday, data on private-sector employment from U.S. payrolls processor ADP showed private employers added 119,000 jobs in April, far fewer than expected. At 7:39 a.m. (1139 GMT), the Canadian currency stood at C$0.9880 versus the U.S. dollar, or $1.0121, up slightly from Thursday's finish at C$0.9889 versus the greenback, or $1.0112. Jespersen sees broad support for the Canadian dollar around parity and resistance around C$0.9800. "The U.S. data has been disappointing of late but this (nonfarm payrolls) number will obviously be key over the next month." he said. "If we do see a strong number, this could really reinvigorate the Canadian dollar, but if it disappoints again we could see it slip back another half a cent or more." Investors also were focused on weekend elections in the euro zone, with evidence of a sharp contraction in the region's dominant services sector suggesting its recession could last longer than feared. Voting in France and Greece is likely to provide a litmus test of popular tolerance for further austerity, a day after the European Central Bank ended near-term hopes of more policy easing to boost the ailing economy. Canadian bond prices were little changed across the curve. Canada's two-year bond slipped half a Canadian cent to yield 1.309 percent, while the benchmark 10-year bond was up 2 Canadian cents to yield 2.089 percent.
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0d717e9eceaf930e7afdf55820d46dff
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https://www.reuters.com/article/markets-canada-dollar-bonds-idCAL1E8G72E620120507?edition-redirect=ca
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CANADA FX DEBT-C$ falls near parity after Europe elections
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CANADA FX DEBT-C$ falls near parity after Europe elections
By 0 Min Read
* C$ hits 3-wk low of C$0.9988 vs US$, or $1.0012 * Bond prices climb across the curve By Claire Sibonney TORONTO, May 7 (Reuters) - The Canadian dollar stumbled to the lowest level against its U.S. counterpart in almost three weeks on Monday on worries that anti-austerity election results in Europe could thwart the region's drive to contain its debt crisis. Investors fled riskier assets after the two pro-bailout parties in Greece failed to win a parliamentary majority, rekindling fears over the country's future in the euro zone. Greece's vote, combined with the victory of Socialist Francois Hollande over incumbent Nicolas Sarkozy in a French presidential election, will raise pressure on Europe's paymaster, Germany, to pursue a more growth-oriented approach to the crisis. "In France it seemed to be largely expected ... people were maybe a little more surprised at the more tenuous coalition that could exist in Greece," said David Tulk, chief Canada macro strategist at TD Securities. "This is consistent with a theme that as good as we think that things are in Europe, we still are nowhere near out of the woods, so prepare for more volatility in the interim." At 8 a.m. (1200 GMT), the Canadian dollar was at C$0.9967 versus the U.S. dollar, or $1.0033, down from Friday's finish at C$0.9955 versus the U.S. dollar, or $1.0045. Earlier, the domestic currency touched a low of C$0.9988, or $1.0012, its weakest level against the greenback since April 17. Tulk noted that the parity level still stood out as significant support for the U.S. dollar against Canada's. "(The Canadian dollar) has held in reasonably well, even the euro has been still within its recent range," he said. "That probably reflects the fact that some of these results, at least from the core perspective were somewhat expected," he said." The signs of a renewed political crisis in Europe came just as Friday's downbeat U.S. nonfarm payrolls report dealt a blow to hopes of recovery for the world's largest economy. Canadian bond prices tracked U.S. Treasuries higher across the curve. Canada's 2-year bond up 4 Canadian cents to yield 1.232 percent, while the benchmark 10-year bond climbed 35 Canadian cents to yield 1.982 percent.
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c167aee3e68752e210be60e4edbfd979
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https://www.reuters.com/article/markets-canada-dollar-bonds-idCAL1E8G7NNV20120507?edition-redirect=ca
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CANADA FX DEBT-C$ recovers after drop on Europe elections
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CANADA FX DEBT-C$ recovers after drop on Europe elections
By 0 Min Read
* C$ ends higher at C$0.9930 vs US$, or $1.0070 * Hits near 3-week low after Europe elections rattle investors * Bond prices softer across the curve By Jennifer Kwan TORONTO, May 7 (Reuters) - The Canadian dollar recovered on Monday after stumbling to its lowest level in almost three weeks against its U.S. counterpart on worries that anti-austerity election results in Europe could thwart the region's drive to contain its debt crisis. The currency fought higher and retraced moves in global equity and commodity markets, which sold off overnight after the defeat of incumbents in weekend elections in Greece and France. The results of the elections heightened the uncertainty of the path ahead for the euro-zone debt crisis. "There was an initial reaction to some of the uncertainty from the European elections, which brought commodities down, equities down, basically risk assets. There's basically a retracement of a lot of those moves," said Greg Moore, foreign exchange strategist at TD Securities. Earlier the Canadian dollar touched a low of C$0.9988, or $1.0012, its weakest level against the greenback since April 17. It finished the session at C$0.9930 versus the U.S. dollar, or $1.0070, slightly higher than Friday's finish at C$0.9955 versus the U.S. dollar, or $1.0045. An anti-austerity backlash by voters in Greece and France shook the euro zone on Monday, causing jitters for the euro currency and stock markets amid doubts about whether Greece has a future in the euro. But by midday on Monday world markets took political upheaval in Europe largely in stride, with the euro recovering from sharp losses and local equity markets up. "I think this market was pretty well positioned for the results that came out. It's a little bit of the sell-the-rumor, buy-the-fact scenario unfold," said Matt Perrier, director of foreign exchange sales at BMO Capital Markets. TD's Moore also said the currency remained supported by the lingering effects of a more hawkish Bank of Canada. The central bank surprised investors last month with a more positive domestic economic outlook and an explicit warning that it may have to start raising interest rates again. The Bank of Canada has frozen rates at 1 percent since September 2010 after it became the first in the G7 to raise borrowing costs from lows hit during the financial crisis. Another factor supporting the Canadian dollar on Monday was upbeat building permits data. The value of Canadian building permits unexpectedly climbed in March even while plans for home building softened for the third straight month, Statistics Canada reported on Monday, likely calming nerves among policymakers troubled by soaring property prices and debt. In the short term, BMO's Perrier saw the Canadian currency trading in a tight range of C$0.9900 to C$0.9938 against the greenback. Canadian bond prices were flat to softer across the curve, with Canada's 2-year bond down 4 Canadian cents to yield 1.271 percent, while the benchmark 10-year bond sank 12 Canadian cents to yield 2.032 percent.
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https://www.reuters.com/article/markets-canada-dollar-bonds-idCAL1E8GI3GK20120518?edition-redirect=ca
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CANADA FX DEBT-C$ rallies on risk recovery, inflation surprise
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CANADA FX DEBT-C$ rallies on risk recovery, inflation surprise
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* C$ hits session high of C$1.0139 vs US$, or 98.63 U.S. cents * 2-yr bond yield climbs after stronger-than-expected inflation * Total inflation 2.0 pct annually By Claire Sibonney TORONTO, May 18 (Reuters) - The Canadian dollar bounced up from more than a four-month low against the U.S. currency on Friday as riskier assets recovered from a violent, Europe-led sell-off this week and data showed Canada's inflation rate rose more than expected in April. The country's inflation edged up to 2.0 percent, versus expectations for a 1.9 percent increase, matching the Bank of Canada's target as gasoline prices rose. Following the release, the currency firmed to C$1.0139 against the greenback, or 98.63 U.S. cents, from around C$1.0164, or 98.39 U.S. cents immediately before the data. "The number was relatively firm, if you look at where it came from it was in some of the more volatile categories ... this suggests the Bank of Canada will probably sort of look through the number," said Mark Chandler, head of fixed income and currency strategy at RBC Capital Markets. "I don't think the market impact will be that great either, obviously because of the environment that we are in." The currency was already on stronger footing heading into the report. It recovered from a more than 3 percent drop this week to back below 98 U.S. cents on Friday, a day after Moody's cut its rating on Spanish banks en masse, heightening fears of contagion from the Greek political crisis. Following the data, traders slightly raised bets of an interest rate increase by the Bank of Canada later this year, but that probability has come down over the course of the week. "From a strictly domestic standpoint, I think it does advance the case for the bank raising rates. Having said that, the bank also has to, of course, deal with the reality of a further flare up in the European situation, and I think that's going to overwhelm domestic considerations," said Doug Porter, deputy chief economist at BMO Capital Markets. At 9:10 a.m. (1310 GMT), the Canadian dollar stood at C$1.0166 versus the U.S. dollar, or 98.37 U.S. cents, up from Thursday's North American session close at C$1.0191 versus the U.S. dollar, or 98.13 U.S. cents. Earlier, the currency dropped as low as C$1.0227, or 97.78 U.S. cents, its weakest since Jan. 16. The currency was largely following the direction of rising U.S. stock index futures after a rough week on the back of Europe's escalating debt crisis. U.S. futures edged up, but major global indexes were set up to close their worst week of the year. Facebook Inc's long-expected debut could help lift otherwise battered investor sentiment. "It felt like people were bracing themselves for financial market Armageddon," said Jeremy Stretch, head of currency strategy at CIBC in London. "There might be a little of consolidation today, but it's more of a case of looking to lock in a little bit of profit after a pretty violent week, and I think people will come back and reassess at the beginning of next week." Stretch said that the Canadian dollar must close substantially firmer than C$1.0140 versus the U.S. dollar, or 98.62 U.S. cents, in order to see a potential turn in sentiment for the domestic currency. "I don't foresee that happening even though risk is looking a little better bid at this point in the day. It's going to be tough, and I probably still prefer to be long dollar/CAD into the start of next week overall." Canadian government bonds lagged U.S. Treasuries prices at the short end of the curve and outperformed at the long end. The yield on the two-year Canadian government bond , which is especially sensitive to Bank of Canada interest rate moves, rose to 1.25 percent from 1.228 percent just before the release. Canada's 10-year yield dropped to 1.883, from around 1.891 percent.
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d39073e41b4a274f8c745d87f8b83ccd
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https://www.reuters.com/article/markets-canada-dollar-bonds-idCAL1E8GN1YQ20120523?edition-redirect=ca
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CANADA FX DEBT-C$ softer as market eyes European summit
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CANADA FX DEBT-C$ softer as market eyes European summit
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* C$ hits low of C$1.0246 vs US$, or 97.60 U.S. cents * Retail sales edge up 0.4 pct in March * Currency outperforms New Zealand and Australian dollars * Bonds climb across curve; 30-yr yield near record low By Jennifer Kwan TORONTO, May 23 (Reuters) - Canada's dollar edged lower against its U.S. counterpart on Wednesday, dragged down by broader concerns about Europe's financial stability, even as domestic data showed retail sales bounced back in March. Canadian retail sales climbed in March after a February setback, growing 0.4 percent as consumers bought more cars and warm weather prompted them to begin their spring shopping for items such as clothing, sporting goods and garden equipment. The rise was a notch above the 0.3 percent gain forecast by market operators and followed a 0.2 percent decline in February, according to government data. Excluding autos, however, sales were up just 0.1 percent versus a market forecast for a rise of 0.5 percent rise. After the report, the Canadian dollar slipped to a session low of C$1.0246 versus the U.S. currency, or 97.60 U.S. cents, from about C$1.0225 just before the data's release. At around 9:25 a.m. (1425 GMT), the currency was at C$1.0230 versus the U.S. currency, or 97.75 U.S. cents, weaker than Tuesday's North American session finish at C$1.0218. "The retail sales number has had a very fleeting impact," said Greg Moore, a foreign exchange strategist at TD Securities. "The focus remains on Europe for now." Investors shunned riskier assets on doubts that any new measures to tackle the euro zone debt crisis would emerge from a European leaders summit. Lack of market confidence the summit would yield meaningful progress sent the euro to a 21-month low, put an end to a rally in European equities, and sent yields on Spanish and Italian bonds higher. The leaders are expected to discuss boosting growth at their meeting later on Wednesday and the idea of a joint euro zone bond. French President Francois Hollande supports the bond plan, but German Chancellor Angela Merkel opposes it. A key concern will be ways to aid debt-mired Greece, said Moore, who sees the currency trading in a tight range of C$1.0150-C$1.0250 against the greenback. Canada's dollar notched a mixed performance against other G10 currencies, but outperformed some of its commodity-linked peers, reaching 2012 highs against the New Zealand and Australian dollars. Canada's two-year government bond climbed 10 Canadian cents higher to yield 1.164 percent, while the benchmark 10-year bond rose 40 Canadian cents to yield 1.867 percent. The 30-year yield was 2.418 percent, near the record-low level of 2.408 percent reached last week.
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78fdbaf247e2cde5d3ad0a78703e5df9
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https://www.reuters.com/article/markets-canada-dollar-bonds-idCAL1E8GO1U920120524?edition-redirect=ca
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CANADA FX DEBT-C$ stabilizes from 4-month low
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CANADA FX DEBT-C$ stabilizes from 4-month low
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* C$ holds ground at C$1.0251 vs US$, or 97.55 U.S. cents * Bond prices drift higher amid Europe worries By Claire Sibonney TORONTO, May 24 (Reuters) - The Canadian dollar steadied on Thursday after touching its weakest level in more than four months in the previous session, though investors continued to worry about a worsening debt crisis in Europe. The euro hit a 22-month low and safe-haven German bonds achieved record low yields, after data showed Europe's economic outlook deteriorating as business confidence is undercut by talk of a Greek exit and slow progress in tackling the debt crisis. "Unfortunately the trend is still (unchanged). I think risk aversion is still the go-to trade at the moment," said Dean Popplewell, chief currency strategist at OANDA. "There's very good demand for U.S. dollars on any Canadian rally at the moment." The dollar index climbed to a 20-month high on Thursday. "I think Canada has certainly overextended itself...what tends to happen in this Canadian trading environment is that it does take a breather, more so than other currencies, specifically because of its economic ties to the U.S.," added Popplewell. At 8:03 a.m. (1203 GMT), the Canadian dollar, the currency stood at C$1.0251 versus the U.S. dollar, or 97.55 U.S. cents, off slightly from Wednesday's close at C$1.0242 versus the U.S. currency, or 97.64 U.S. cents. Data that showed private-sector factory activity in China also faltered in May as demand for exports fell also hit investor sentiment, in a sign the impact of the euro zone crisis could be undermining global economic recovery as Europe is China's largest export market. Traders will look to U.S. jobless claims and durable goods data at 8:30 a.m. for further direction. Popplewell said that beyond the Canadian dollar's Wednesday low near C$1.03, the currency still stands to lose another cent to cent and half in the near term. Canadian bond prices ticked up, tracking U.S. Treasuries higher on concerns over the health of the euro zone economy. Canada's two-year bond was up 1 Canadian cent to yield 1.146 percent, while the benchmark 10-year bond rose 12 Canadian cents to yield 1.864 percent.
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106342108d76e14c387425ce3715cb1f
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https://www.reuters.com/article/markets-canada-dollar-bonds-idCAL1E8KA3I120120910?edition-redirect=ca
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CANADA FX DEBT-Canadian dollar rests near 12-month high
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CANADA FX DEBT-Canadian dollar rests near 12-month high
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* C$ sticks near 12-mth high vs US$ at C$0.9766, or C$1.0240 * Bond prices little changed across the curve By Claire Sibonney TORONTO, Sept 10 (Reuters) - The Canadian dollar hovered at a one-year high versus the U.S. dollar on Monday, buoyed by last week's strong domestic employment report and hopes of more policy easing in the United States. Canada on Friday reported the economy added 34,300 jobs in August, topping all expectations of analysts surveyed by Reuters. Canada has recouped all the jobs lost in the recession, and employment stands 176,600 higher than in August 2011, with most of the increases in full-time positions. By comparison, U.S. jobs growth slowed sharply in August, with nonfarm payrolls up only 96,000, well below what would normally be needed to put a dent in the jobless rate and setting the stage for the Fed to pump additional money into the sluggish economy when it meets later this week. At 8:20 a.m. (1220 GMT), the Canadian dollar stood at C$0.9770 against the greenback, or $1.0235, slightly firmer than Friday's North American session close at C$0.9782, or $1.0223. Earlier on Monday, it touched C$0.9766, or C$1.0240, matching Friday's high and the strongest level since Sept. 19, 2011. "We're of the opinion that it may not well be so much of a done deal that the Fed does more QE, so it may be the case that at these sort of levels there's potentially some small opportunities just to add to some dollar/CAD long positions on the basis that the U.S. dollar may well get a little bit of a post-Fed bounce," said Jeremy Stretch, head of currency strategy at CIBC in London. Stretch said firm Canadian-dollar resistance around the C$0.9766 area will likely cap any major moves stronger in the near term. Elsewhere, global stocks and the euro dipped as investors cashed in some of last week's sharp gains ahead of a German ruling on the euro zone's new bailout fund, Dutch elections and the conclusion of the Fed's two-day policy meeting on Thursday. Weak economic data in China reinforced prospects for more stimulus measures there. Canadian government bonds were little changed the curve, with the two-year bond off 1 Canadian cent to yield 1.181 percent and the benchmark 10-year bond up 1 Canadian cent, yielding 1.854 percent.
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https://www.reuters.com/article/markets-canada-dollar-bonds-idCAL1E8KAH0N20120910?edition-redirect=ca
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CANADA FX DEBT-C$ holds near 12-month highs as Fed eyed
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CANADA FX DEBT-C$ holds near 12-month highs as Fed eyed
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* C$ hits 12-month high at C$0.9755 vs US$, or $1.0251 * Bond prices higher across the curve By Solarina Ho TORONTO, Sept 10 (Reuters) - The Canadian dollar hit its loftiest level in more than one year against its U.S. counterpart on Monday, outperforming other major currencies amid hopes of further stimulus in the United States. The market is pricing in some expectation that the Federal Reserve will decide on a third round of monetary easing when it meets later this week, following data last Friday that showed U.S. jobs growth in August was well below what would normally be needed to put a dent in the jobless rate. "The risk backdrop remains positive here. The weaker-than- expected U.S. employment number has fueled the fire for the market looking for a potential nod to QE3 out of the Fed," said Matt Perrier, a director of foreign exchange sales at BMO Capital Markets. The Canadian dollar finished at C$0.9775 against the greenback, or $1.0230, firmer than Friday's North American session close at C$0.9782, or $1.0223. Earlier in the session, the currency hit a session high of C$0.9755 to the U.S. dollar, or $1.0251, its strongest level since Sept. 1, 2011. Further stimulus will bolster non-U.S. currencies and analysts say the market will be looking to see exactly how much money the Fed will pump into the economy. Traders also cited improved risk appetite in general after the European Central Bank last week unveiled a plan to cut borrowing costs for its most indebted countries. Weak trade data out of China on Monday underlined the likelihood of more Beijing-backed spending, which could also bolster the commodities-linked Canadian dollar. "The other outlier that people aren't talking about quite as much is the pace of things in China and commodity prices," said Dov Zigler, financial markets economist at Scotiabank. "If there were to be meaningful stimulus measures out of China, you'd definitely see a rally in the Australian dollar and with it, a lot of the currencies that move in lockstep - CAD being another one. It's one of those weird situations where bad news becomes good news." Chinese firms have been cutting production, inventories and imports in the face of anemic global demand. It's grim news for the country where exports generate 25 percent of gross domestic product and support an estimated 200 million jobs. Perrier pointed to the next resistance level around C$0.9725, near the August 2011 high. Breaking through that could open up the way toward C$0.95 and then C$0.94. Canadian government bond prices were higher across the curve, with the two-year bond off 1.5 Canadian cents to yield 1.168 percent and the benchmark 10-year bond up 28 Canadian cents, yielding 1.825 percent.
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https://www.reuters.com/article/markets-canada-dollar-bonds-idCAL1E8KQ3BW20120926?edition-redirect=ca
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CANADA FX DEBT-C$ weakens as European worries unnerve investors
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CANADA FX DEBT-C$ weakens as European worries unnerve investors
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* C$ at C$0.9834 vs US$, or $1.0169 * Euro zone concerns spark equity selloff * Bond prices rise across the curve TORONTO, Sept 26 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Wednesday, tracking global markets, as worries about the world economy and a bailout for Spain weighed on sentiment. Stock markets fell around the world on Wednesday and the European single currency hit a two-week low as popular opposition within the euro zone to austerity unnerved investors already worried about a weak global growth outlook. Concern about a bailout for Spain and over the euro zone's ability to tackle its financial crisis has sparked a sharp rise in volatility on equity markets, leading to the worst day since June for the S&P 500 index on Tuesday and subsequent falls across Asia. "There's no one thing in particular the market's focusing on. We've just had this constant drip-feed of what's been taken as negative news," said Adam Cole, global head of FX strategy at RBC Capital Markets in London. "None of them is really new, nothing that we didn't already know, but the fact that it's just been relentless all day, really, has given us this negative tone for risk generally and that's weighing on the Canadian dollar." At 9:06 a.m. (1306 GMT), the Canadian dollar stood at C$0.9834 versus the U.S. dollar, or $1.0169, down from Tuesday's North American session close at C$0.9806, or $1.0198. Cole said that with little domestic news expected to drive the currency, the top of the range for the Canadian dollar should be capped around C$0.9840, near current levels. "It would take significant news to get it to break up through that," said Cole, adding that in the near term, the currency should not weaken too much more than C$0.99 to the U.S. dollar due to the Federal Reserve's ambitious stimulus program. Canadian government bond prices were higher across the curve. The two-year bond rose 3.2 Canadian cents to yield 1.106 percent, while the benchmark 10-year bond gained 44 Canadian cents, yielding 1.767 percent.
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58fb7a72a302e8b8c1f4466198d063bd
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https://www.reuters.com/article/markets-canada-dollar-bonds-idCAL1E8L9AN620121009?edition-redirect=ca
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CANADA FX DEBT-C$ flat as IMF report offsets China stimulus hope
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CANADA FX DEBT-C$ flat as IMF report offsets China stimulus hope
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* Canadian dollar at C$0.9786 to the US$, or $1.0219 * Hit by IMF report on slowing global growth * China stimulus hopes, higher oil prices provide support By Alastair Sharp TORONTO, Oct 9 (Reuters) - Canada's dollar gave up early gains against its U.S. counterpart on Tuesday as a warning about slowing global growth from the IMF weighed on the currency, offsetting a boost from rising oil prices and bets that China will move to kick-start demand. The International Monetary Fund said the global economic slowdown is worsening, and cut its growth forecasts for the second time since April. The IMF also warned U.S. and European policymakers that failure to fix their economies' ills would prolong the slump. "When the IMF comes out and revises down global growth it can lead to a weaker Canadian dollar because global investors view Canada as an export-heavy, commodity-heavy economy," said Craig Alexander, chief economist at Toronto-Dominion Bank. "The Canadian economy is leveraged to the global business cycle." At 12:26 p.m. (1626 GMT) the Canadian dollar traded at C$0.9786 to the U.S. dollar, or $1.0219, slightly stronger than its Friday close of C$0.9789, or $1.0216. Most Canadian currency traders were away from their desks on Monday for the Canadian Thanksgiving holiday. Canadian government bond prices also reversed course as investors sought safer assets, with the two-year bond rising 1 Canadian cent to yield 1.133 percent, while the benchmark 10-year bond added 10 Canadian cents to yield 1.796 percent. The Canadian currency's weakness was limited by an injection of more cash into China's money markets by the country's central bank, which encouraged expectations that the world's second largest economy would take further steps to spark growth. Oil prices also offered support. Oil rose to around $113 a barrel on Tuesday after two days of losses, with tensions in the Middle East and the risk of supply disruptions outweighing concerns about sluggish global demand. Canada is a major oil exporter, and rising energy prices tend to support its currency. Some analysts said there was a sense in the market that there was little new in the IMF report, and that its impact might not last long. "It's a hope that the global economy is not getting worse, that's what the view of the market is," said Charles St-Arnaud, Canadian economist and currency strategist at Nomura Securities in New York. "The IMF is behind the curve, everyone knows the global economy is slowing, and I think there was some relief that the downgrade was in line with what markets were expecting," he said. Toronto-Dominion's Alexander also suggested the setback may be short-lived. "The question is really how long that negative assessment lasts and I would suggest the next data point that is strong will be more than enough to offset any impact from the IMF report," he said.
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a1b33264c30af0b712e807d4dfeed7a6
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https://www.reuters.com/article/markets-canada-dollar-bonds-idCAL1E8LB6F920121011?edition-redirect=ca
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CORRECTED-CANADA FX DEBT-C$ boosted by N.American data
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CORRECTED-CANADA FX DEBT-C$ boosted by N.American data
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(Corrects Wednesday's closing price in third paragraph) * C$ at C$0.9778 to US$, or $1.0227 * Data on Canadian trade deficit, U.S. jobless claims helps * Spain under pressure to seek bailout after S&P downgrade By Alastair Sharp TORONTO, Oct 11 (Reuters) - The Canadian dollar strengthened to a session high against its U.S. counterpart on Thursday after claims for U.S. jobless benefits fell to a multi-year low and Canada reported a narrower-than-expected trade deficit. The resources-linked currency was also helped by positive jobs data from fellow mining exporter Australia and by Standard & Poor's ratings downgrade of Spain, which traders calculated would push the country closer to requesting a bailout. At 9:31 a.m. (1331 GMT), the Canadian currency was trading at C$0.9772 to the greenback, or $1.0233, compared to its North American close at C$0.9807, or C$1.0197, on Wednesday. "The Spain downgrade caught a few people off guard," said Steve Butler, director of foreign exchange trading at Scotiabank. "But risk has come roaring back this morning and we see stocks pointing in the right direction, and that's helping the Canadian dollar." "We also had a positive surprise in Aussie jobs numbers overnight, so that's influencing the commodity space a little bit and oil's up this morning. So all things good for Canada seem to be in play this morning, and that's got Canada on its front foot again after yesterday's pretty ugly selloff." The number of Americans filing new claims for unemployment benefits fell sharply last week to the lowest level in more than four and a half years, according U.S. government data on Thursday that suggested improvement in the labor market of Canada's main trading partner. Canada's trade deficit fell more than expected in August as imports declined, Statistics Canada data showed. With investors shifting into riskier assets, Canadian government bond prices fell. The two-year bond slipped 4 Canadian cents to yield 1.156 percent, while the benchmark 10-year bond fell by 34 Canadian cents, to yield 1.830 percent. (Editing by Leslie Adler)
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82393d34dbe62ab7abab7f77a1246c1b
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https://www.reuters.com/article/markets-canada-dollar-bonds-idCAL1E8MRCDL20121127?edition-redirect=ca
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CANADA FX DEBT-C$ weakens as U.S. fiscal concerns grip market
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CANADA FX DEBT-C$ weakens as U.S. fiscal concerns grip market
By 0 Min Read
* C$ at $0.9947 vs US$, or $1.0053 * US Senate leader says disappointed in fiscal cliff talks * U.S. data comes in better than expected * Global lenders broker deal to cut Greek debt * Bond prices higher By Solarina Ho TORONTO, Nov 27 (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Tuesday as concerns over lack of progress in U.S. talks to avert the year-end "fiscal cliff" left investors cautious. U.S. Senate Majority Leader Harry Reid said he was disappointed that there has been "little progress" by lawmakers to reach a deal to avoid the fiscal cliff, a convergence of an estimated $600 billion in tax increases and spending cuts that threatens to trigger another recession. Benjamin Reitzes, senior economist and foreign exchange strategist at BMO Capital Markets, cited market anxiety about the U.S. budget talks and the comments by Reid for the currency's performance. "We've stayed in a pretty tight range, there's no reason to believe we're going to get out of that anytime soon," he said. The weakness in the Canadian dollar was not alleviated by data that showed U.S. consumer confidence in November rose to a 4-1/2-year high even though the currency typically responds positively to signs of growth in the economy of its southern neighbor and biggest export market. One analyst said its move lower might have had to do with repositioning after a bounce in light trading last week. "All the economic data that's been released this morning, at least in the U.S. session, generally met or exceeded expectations," said David Tulk, chief Canada macro strategist at TD Securities, referring to the consumer confidence index, house price data and gauges of planned business spending and manufacturing activity. "So from that perspective, I'm inclined to think of this as more of a couple of weeks worth of moves that's being dealt with as opposed to just a momentary reaction to the data." The Canadian dollar finished the North American session at C$0.9947 to the U.S. dollar, or $1.0053, down from Monday's North American close of C$0.9938, or $1.0062. It underperformed most of its counterparts, including the euro, the Australian and New Zealand dollars . Earlier in the session, investor sentiment was boosted after the International Monetary Fund (IMF) and Greece's euro zone neighbors brokered a deal to cut Greek debt, and that, along with early U.S. data, briefly boosted the Canadian currency to C$0.9906, its strongest level since Nov. 7. After 12 hours of talks, global lenders agreed on a package of measures to reduce Greek debt to 124 percent of gross domestic product by 2020 and promised further measures to lower it below 110 percent in 2022. "Maybe it's buy the rumor, sell the facts. It's a little bit of that today mitigating some of the positives on the back of the better U.S. numbers," Reitzes said. Prices for Canadian government debt were higher, with the two-year bond up 1.5 Canadian cents to yield 1.095 percent and the benchmark 10-year bond rising 30 Canadian cents to yield 1.728 percent.
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https://www.reuters.com/article/markets-canada-dollar-bonds-idCAL1E8NB3CI20121211?edition-redirect=ca
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CANADA FX DEBT-C$ firms to 7-wk high after Canada trade deficit shrinks
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CANADA FX DEBT-C$ firms to 7-wk high after Canada trade deficit shrinks
By 0 Min Read
* C$ at C$0.9868 vs US$, or $1.0134 * C$ touches session high at C$0.9858, or $1.0144 * Canada posts narrower-than-expected trade deficit of C$169 mln * Bond prices ease across the curve By Solarina Ho TORONTO, Dec 11 (Reuters) - Canada's currency was steady on Tuesday after briefly touching its strongest level in nearly two months against the U.S. dollar following data that showed Canada's trade deficit unexpectedly shrank in October. Canada posted a trade deficit of C$169 million ($171 million) in October from a revised C$1.01 billion deficit in September as imports fell 1.2 percent while higher prices and volumes drove up exports by 1.0 percent. Analysts had expected a shortfall of C$1.2 billion. "It's indicating a possible bounce back in growth, that's probably supporting the Canadian dollar," said Paul Ferley, assistant chief economist at Royal Bank of Canada. "It's better than expected so (the Canadian dollar) will provide a little bit of lift, but I think the impact could be fairly short-lived until we get further confirmation of indications of growth bouncing back here in Canada for the final quarter of this year." The data was in contrast to U.S. trade data, which showed its deficit widened in October. Exports suffered their biggest drop in nearly four years, indicating slowing global demand was spilling over into the already struggling U.S. economy. At 9:54 a.m. (1454 GMT), the Canadian dollar stood at C$0.9868 versus its U.S. counterpart, or $1.0134, little changed from Monday's session close at C$0.9870, or $1.0132. The currency touched a session high after the Canadian trade data release. It hit C$0.9858, or $1.0144, its strongest level since Oct. 19, but was still stuck in a narrow range of between $0.9858 to $0.9880. It underperformed against other major currencies against a broadly weaker greenback, including the euro after better-than-expected German investor sentiment data. "As the euro has rallied, you've seen some weakness not only in the U.S. dollar but in the Canadian dollar against the crosses," said Matt Perrier, director of foreign exchange sales at BMO Capital Markets. The other main focus for investors was a meeting of the Federal Reserve and "fiscal cliff" talks in the United States to avoid $600 billion of previously drawn-up spending cuts and tax hikes set to begin in the new year. When the Fed concludes its meeting on Wednesday, the central bank is expected to extend its asset-purchase scheme and commit to buy $45 billion of U.S. debt each month. A close higher on Tuesday would mark the sixth straight daily advance for the currency after the Canadian government's approval of two big takeovers and a hawkish sounding central bank boosted confidence over the past week. Perrier pointed to U.S. dollar support around C$0.9845, followed by C$0.9815-20. He noted resistance in the C$0.9910-20 area. "You'd probably see some of the more recent entrants into the short dollar/Canada trade probably feel a little bit of pain on a move through there," Perrier added. Canadian bond prices eased across the curve as global stock markets advanced, buoyed by the pick-up in German confidence and expectations the Federal Reserve will keep pumping money into the U.S. economy. Canada's two-year bond lost 3 Canadian cents to yield 1.073 percent, and the benchmark 10-year bond gave back 16 Canadian cents to yield 1.718 percent.
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https://www.reuters.com/article/markets-canada-dollar-bonds-idCAL1E8NC25L20121212?edition-redirect=ca
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CANADA FX DEBT-C$ rises as Fed expected to expand stimulus
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CANADA FX DEBT-C$ rises as Fed expected to expand stimulus
By 0 Min Read
* C$ at C$0.9858 to US$, or $1.0144 * U.S. Fed expected to provide further monetary stimulus By Alastair Sharp TORONTO, Dec 12 (Reuters) - The Canadian dollar firmed slightly on Wednesday as investors turned their focus to the end of a U.S. Federal Reserve meeting and an expected announcement of further monetary stimulus. Markets expect the Fed to expand its current asset purchase scheme, committing to buy $45 billion of U.S. debt and extend its purchases of mortgage-backed debt to help sustain the fragile U.S. economic recovery. "All the risk currencies are performing well today," said Adam Cole, global head of FX strategy at Royal Bank of Canada. "It's a risk-on day generally....expectations for the Fed are probably behind that to a degree." Oil, gold and copper prices were all higher, at least in part on hopes for Fed action. At 7:44 a.m. (1244 GMT) the Canadian dollar was trading at C$0.9858 to the greenback, or $1.0144, compared with C$0.9862, or $1.0140, at Tuesday's North American close. The Canadian dollar was underperforming other resource-linked currencies including the Australian and New Zealand dollars, as well as the euro and British pound. Canadian government debt prices were lower across the curve, with the two-year bond off 2 Canadian cents to yield 1.087 percent, while the benchmark 10-year bond fell 14 Canadian cents to yield 1.745 percent.
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faec3bfc37c46c321816020832aaa698
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https://www.reuters.com/article/markets-canada-dollar-bonds-idCAL1E9CAC1G20130110?edition-redirect=ca
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CANADA FX DEBT-C$ buoyed by ECB talk, China data
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CANADA FX DEBT-C$ buoyed by ECB talk, China data
By 0 Min Read
* C$ ends stronger at $0.9845 vs US$, or $1.0157 * Bond prices ease, underperform Treasuries By Claire Sibonney TORONTO, Jan 10 (Reuters) - The Canadian dollar climbed to a more than one-week high against the greenback on Thursday as strong Chinese trade data boosted commodity-linked currencies, while some encouraging remarks by the European Central Bank added to pressure against the U.S. dollar. The euro zone economy will recover later in 2013 and there are already some signs of stabilization, the European Central Bank said on Thursday after it unanimously held interest rates at a record low. "There's been a fair bit of price action on the back of the stop-loss buying of the euro and it comes at the expense of the U.S. dollar and the Japanese yen," said Jack Spitz, managing director of foreign exchange at National Bank Financial. The euro catapulted to an 18-month high versus the yen and hit a one-week peak against the U.S. and Canadian dollars after the ECB gave no indication of cutting. Meanwhile, the Canadian currency appeared to brush off disappointing domestic indicators. Data on Thursday showed the value of building permits issued in Canada during November tumbled to the lowest level since January 2012 due mainly to a slowdown in housing and non-housing construction in the most populous province, Ontario. "The huge miss on building permits this morning was swept up in the fray," added Spitz. "It should have had more influence than it did but it just happened to coincide with Draghi's press conference so it was skimmed from an influence point of view." On the upside for Canada's resource-driven currency, however, China surprised most observers by reporting its exports had rebounded sharply in December to hit a seven-month high, with imports growing at double the expected rate. The Canadian dollar ended the North American session at C$0.9845 versus its U.S. counterpart, or $1.0157, compared with C$0.9877, or $1.0125 at Wednesday's close. Jeremy Stretch, head of currency strategy at CIBC World Markets in London, noted some near-term resistance for the Canadian dollar at the bottom of the recent range around C$0.9820. Overall, the Canadian dollar was expected to remain firm despite the fact that January has been negative for the currency in seven of the last 10 years. Many analysts and market players expect the Canadian dollar to keep climbing well into 2013. "The Canadian dollar is likely to grind higher over the coming months due to diminishing risks of a European sovereign debt meltdown, better than expected growth from China, a bullish bias to domestic interest rates and a sense that the USA will find a way to skirt around the debt ceiling issue," said Michael O'Neill, vice president of FX trading at Jitneytrade. Investors will be paying close attention to Canadian trade data for November on Friday and a speech late on Thursday by Tiff Macklem, a senior Bank of Canada official widely tipped to replace the departing Governor Mark Carney. "His words are going to be forensically examined as markets attempt to understand if and how he will be running policy if he were to be the next governor and of course that's still an if rather than a certainty," said CIBC's Stretch. Canadian bond prices eased across the curve, mostly underperforming U.S. Treasuries. The two-year bond was off 4 Canadian cents to yield 1.186 percent, while the benchmark 10-year bond was down 42 Canadian cents to yield 1.953 percent.
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88b4992c39735027ce2670fd06652844
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https://www.reuters.com/article/markets-canada-dollar-bonds-idCAL1N0BPCPJ20130225?edition-redirect=ca
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CANADA FX DEBT-C$ hits 8-month low on Italian election worries
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CANADA FX DEBT-C$ hits 8-month low on Italian election worries
By 0 Min Read
* C$ at C$1.0276 vs US$, or 97.31 U.S. cents * Worries over Italian election outcome hit stocks, euro * Carney reiterates bank view that rates must rise in time * Two-year bond yield at 7-month lows * 10-year bond yield near 2013 lows By Solarina Ho TORONTO, Feb 25 (Reuters) - The Canadian dollar weakened to eight-month lows against its U.S. counterpart on Monday, tracking equity markets and the euro lower as investors worried that this week's Italian elections will produce a divided parliament that will hobble the country's economic reform efforts. The European news overshadowed a speech and news conference by Bank of Canada Governor Mark Carney, in which he reiterated that the next move for the country's interest rates is likely to be higher. Global markets and the euro fell after projections indicated none of the four main groups running in the Italian parliamentary election is likely to win a majority in the Senate. The outcome of the election is expected to hold the key to whether the current reform program in the euro zone's third-largest economy will continue uninterrupted. "Another election opens up the possibility than an anti-euro party could come into power and that would definitely be a negative for euro and for pretty much all global assets, so you're seeing that today in the Canadian dollar," said Benjamin Reitzes, senior economist and foreign exchange strategist at BMO. "We're just following suit here." The Canadian dollar closed at C$1.0276 versus the U.S. dollar, or 97.31 U.S. cents, weaker than Friday's North American session close at C$1.0208, or 97.96 U.S. cents. The currency at one point hit C$1.0278, its weakest level since June 29. The currency's weakness followed dismal Canadian retail sales and inflation numbers last week. Analysts said data later this week, including a report on the current account on Thursday and GDP data on Friday, could add to the gloom surrounding the currency's outlook. "The market's looking for another reason to take the Canadian dollar weaker at this point and we may get it as the week wears on," said Darcy Browne, managing director at CIBC's Capital Markets Trading. He added that the Canadian dollar could move to C$1.04 to C$1.05 against the greenback over the medium term. Last week's data further trimmed the likelihood that the Bank of Canada will raise interest rates this year. Canadian interest rates are at a near-record low 1 percent. The Bank of Canada has said since early last year its next move is likely to be a rate increase, making it the only Group of Seven central bank with a tightening bias. The weak economic data prompted some speculation the central bank could drop that tightening bias. But Carney's comments seemed to suggest the bank favors the status quo for now, said Benjamin Reitzes, a senior economist and foreign exchange strategist at Bank of Montreal "He still said that rates will still eventually have to go higher ... there's no reason to believe they're going to change things materially at this point," Reitzes said. The Canadian dollar's performance was mixed against other major currencies, weakening against Australia's fellow commodities-linked dollar, but firming against the slumping euro. Government bond prices rose across the curve, tracking U.S. Treasuries. The price of a two-year Canadian government bond climbed 10 Canadian cents, yielding 1.019 percent, its lowest level in seven months. The benchmark 10-year bond jumped 53 Canadian cents, yielding 1.883 percent, its lowest level since the beginning of this year.
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b8f0792e374f11561b5a392d5ea4d48d
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https://www.reuters.com/article/markets-canada-dollar-bonds-idCAL1N0BWFHH20130304?edition-redirect=ca
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CANADA FX DEBT-C$ weakens on global growth worries, awaits Bank of Canada
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CANADA FX DEBT-C$ weakens on global growth worries, awaits Bank of Canada
By 0 Min Read
* C$ at C$1.0277 vs US$, or 97.30 U.S. cents * Global data fuels growth worries * Bank of Canada policy statement in focus this week By Andrea Hopkins TORONTO, March 4 (Reuters) - The Canadian dollar ended slightly weaker against its U.S. counterpart on Monday as global economic uncertainty weighed and investors awaited a policy statement from the Bank of Canada later in the week. Weak Chinese manufacturing and services sectors data added to concern about slower growth in the world's second-largest economy, while lack of progress in forming a new government in Italy and broad U.S. spending cuts that automatically kicked in on Friday added to the global economic uncertainty. In Canada, a string of weak economic data over the last few weeks has pressured the currency. Traders said they are focused on the Bank of Canada's next policy statement, due on Wednesday. While rates are expected to remain unchanged, analysts believe the Canadian dollar could weaken further if the central bank takes a more dovish stance. "The markets are looking for more accommodative language from the bank. There could be some disappointment if we don't see that," said Shaun Osborne, chief currency strategist at TD Securities in Toronto. "They've got to soften up the language a little bit more, or at least recognize that growth has come in a lot, lot weaker than they'd been forecasting." The Canadian dollar ended the North American session at C$1.0277 against the U.S. dollar, or 97.30 U.S. cents, softer than Friday's North American finish at C$1.0271, or 97.36 U.S. cents. Canada's dollar has retreated against the greenback since mid-February, when the pair were trading at equal value. It was underperforming most major currencies on Monday, with the exception of its commodities-linked counterpart, the Australian dollar. Looking ahead to Wednesday, the Bank of Canada is widely expected to hold rates at 1 percent, so investors will be parsing the bank's language in its policy statement. Ongoing issues at home and abroad prompted the Bank of Canada to tone down its more hawkish stance in January, saying the withdrawal of monetary policy stimulus was "less imminent than previously anticipated." "The more dovish they are in the language, the weaker the Canadian dollar should go. But the market is looking for some moderation in the language and if we don't get that the Canadian dollar could recover in the short run," said Osborne. Canadian government bond prices were mixed. The two-year bond was little changed and yielded 0.94 percent, while the benchmark 10-year bond was down 6 Canadian cents to yield 1.806 percent.
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https://www.reuters.com/article/markets-canada-dollar-bonds-idCAL1N0C5E1S20130313?edition-redirect=ca
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CANADA FX DEBT-Canada dollar softer vs greenback on good US data
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CANADA FX DEBT-Canada dollar softer vs greenback on good US data
By 0 Min Read
* C$ ends at C$1.0273 vs US$, or 97.34 U.S. cents * U.S. retail sales better than expected * Bond prices weaker across curve By Solarina Ho TORONTO, March 13 (Reuters) - The Canadian dollar was weaker against the U.S. dollar on Wednesday, as better-than-expected U.S. retail sales bolstered the greenback, while a dearth of domestic data limited moves for Canada's currency. Retail sales out of Canada's largest trading partner rose more than expected in February as Americans bought motor vehicles and a range of other goods, even as they paid more for gasoline, suggesting consumer spending this quarter will hold up, despite higher taxes. The data is the latest evidence that the U.S. economic recovery is gaining traction. The Canadian dollar strengthened initially after the robust data bolstered prospects for the world's largest economy, but trimmed gains for the remainder of the session as the U.S. dollar rose to seven-month highs. "Over the past two years, usually when you had good U.S. data, you would have had an appreciation of the Canadian dollar," said Charles St-Arnaud, economist and currency strategist at Nomura Securities in New York. "Now, the correlation has been changing ... Investors are gradually turning a bit more optimistic about the U.S. economy, especially given the signs coming from the housing market." The Canadian dollar was trading at C$1.0273 to the greenback, or 97.34 U.S. cents, compared with C$1.0261, or 97.46 U.S. cents, at Tuesday's North American close. "We're finally back in what you would consider a normal mode, where stronger data in the U.S. is typically positive for the U.S. dollar. But we haven't lost that much ground against the U.S.," said Mark Chandler, head of Canadian fixed income and currency strategy at RBC Capital Markets. The Canadian dollar was stronger against the euro and Swiss franc. It softened against sterling after Canada on Tuesday touched its strongest level against the British pound since June 2010 on dismal UK manufacturing data. There is little that is expected to move markets on the economic data front for Canada this week, although Chandler said the currency could move if Friday's report on existing home sales is particularly weak. The price of Canadian government debt was weaker across the curve, with the two-year bond off 3 Canadian cents to yield 0.979 percent, while the benchmark 10-year bond eased 9 Canadian cents to yield 1.920 percent.
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https://www.reuters.com/article/markets-canada-dollar-bonds-idCAL1N0EH0RL20130605?edition-redirect=ca
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CANADA FX DEBT-C$ little changed as soft US ADP data curbs greenback
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CANADA FX DEBT-C$ little changed as soft US ADP data curbs greenback
By 0 Min Read
* C$ softens slightly against the greenback * U.S. private sector job creation lower than expected in May * Prospect of Fed slowing stimulus tied to labor market By Alastair Sharp TORONTO, June 5 (Reuters) - The Canadian dollar was little changed on Wednesday versus the U.S. dollar as weaker-than-expected U.S. private sector hiring restrained the greenback's strength, as it is seen reducing the prospect of the Federal Reserve changing its monetary stimulus stance any time soon. The moderate pace of hiring seen in May's U.S. ADP report of 135,000 new private sector jobs may not be enough to persuade the Fed to soon pare back its monthly purchases of $85 billion dollars of bonds. The Fed's bond buying aims to keep U.S. interest rates low, thus making the dollar less alluring for investors seeking higher returns on deposits elsewhere. The Canadian currency weakened considerably last month as robust U.S. economic data bolstered the view that the Fed would rein in its bond buying in the coming months. At 9:53 a.m. (1353 GMT) the Canadian dollar was trading at C$1.0353 to the greenback, or 96.59 U.S. cents, nearly 0.1 percent lower, as compared with C$1.0344, or 96.67 U.S. cents, at Tuesday's North American close. "Markets are all about U.S. dollar direction at the moment. Even dollar/yen is more dollar than it is yen," said Adam Cole, global head of currency strategy at Royal Bank of Canada. "When that's the case, the Canadian dollar tends to be relatively stable." Jobs reports for both the United States and Canada are due on Friday, with the U.S. print more closely watched given the Fed has explicitly linked policy direction to the health of the jobs market. After in recent months acting as a safe haven amid global economic uncertainty, the greenback is now strengthening in relation to stronger data and falling back on weaker numbers. "Now that you've got some movement in expectation of Fed policy expectations, it's more like a conventional world where good news is good news rather than good news is bad news," RBC's Cole said. A series of Reuters polls released on Wednesday showed that the greenback is seen extending its gains against a string of major currencies including the euro, pound sterling and yen, while the Canadian dollar is expected to hold steady. Canadian government debt prices were higher across the curve, with the two-year bond up 2 Canadian cents to yield 1.056 percent, while the benchmark 10-year bond rose 19 Canadian cents to yield 2.063 percent.
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2195f41bfc527d27b1933d86499ac363
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https://www.reuters.com/article/markets-canada-dollar-bonds-idCAL1N0G80O820130807?edition-redirect=ca
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CANADA FX DEBT-C$ falls as Fed talk weighs on commodities
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CANADA FX DEBT-C$ falls as Fed talk weighs on commodities
By Alastair Sharp TORONTO, Aug 7 (Reuters) - The Canadian dollar weakened0 Min Read
Our Standards: The Thomson Reuters Trust Principles.
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ba97f468ef40bc2f1eb4fc1b2d446b52
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https://www.reuters.com/article/markets-canada-dollar-bonds-idCAL1N0I10LV20131011?edition-redirect=ca
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CANADA FX DEBT-C$ ekes out gain after stronger-than-expected jobs data
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CANADA FX DEBT-C$ ekes out gain after stronger-than-expected jobs data
By Solarina Ho TORONTO, Oct 11 (Reuters) - The Canadian dollar strengthened0 Min Read
Our Standards: The Thomson Reuters Trust Principles.
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f7de15cd4cfa2ff2dc90f0213b2d914a
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https://www.reuters.com/article/markets-canada-dollar-bonds-idCAL1N0IB0QD20131021?edition-redirect=ca
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CANADA FX DEBT-C$ weaker ahead of data, BoC decision this week
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CANADA FX DEBT-C$ weaker ahead of data, BoC decision this week
By 0 Min Read
* C$ at C$1.0300 vs US$, or 97.09 U.S. cents * Wholesale trade rises 0.5 percent in August * Bond prices mostly lower across maturity curve By Leah Schnurr TORONTO, Oct 21 (Reuters) - The Canadian dollar weakened slightly on Monday as investors were wary of taking aggressive bets ahead of some key data reports on both sides of the border this week, as well as an interest rate decision from the Bank of Canada. Economic data reports delayed by this month's partial U.S. government shutdown will be released in the coming weeks. One of the most important for markets, the unemployment report for September, will be released on Tuesday. At home, investors will also take in Canadian retail sales for August. The shutdown has raised concerns about how much of a bite it will take out of the already fragile U.S. economic recovery. That casts some uncertainty on Canada's economic prospects, as the United States is Canada's largest trading partner. Investors are also speculating that the impact from the shutdown will see the Federal Reserve maintain the current pace of its economic stimulus program for longer than had been expected. "It's sleepy price action to start off the week," said Scott Smith, senior market analyst at Cambridge Mercantile Group in Calgary. "We've got a lot of data coming down the pipe, so I think people are weighing what the expectations for those (releases) are." The Canadian dollar was at C$1.0300 versus the greenback, or 97.09 U.S. cents, weaker than Friday's close of C$1.0294, or 97.14 U.S. cents. Investors were also staying on the sidelines ahead of an interest rate decision from the Bank of Canada, due on Wednesday. The central bank is expected to keep rates steady at 1 percent. The accompanying statement will likely be a bigger focal point, with investors sensitive to any change in tone that might indicate when the bank will eventually raise rates. "The Bank of Canada has held a relatively hawkish tightening (bias) over the last few statements," said Smith. "The risk is we start to see a little softening of language on the Bank of Canada side of things and maybe looking toward more of an emphasis on boosting export growth and holding off on interest rates until we see that slack removed from the economy." The loonie saw little reaction to domestic data on Monday that showed wholesale trade rose in August, helped by stronger auto sales. Government bond prices were mostly lower across the maturity curve with the two-year bond off 1 Canadian cent to yield 1.186 percent and the benchmark 10-year bond falling 12 Canadian cents to yield 2.544 percent.
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https://www.reuters.com/article/markets-canada-dollar-bonds-idCAL1N0II1LB20131028?edition-redirect=ca
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CANADA FX DEBT-C$ strengthens after last week's rout, Fed eyed
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CANADA FX DEBT-C$ strengthens after last week's rout, Fed eyed
By 0 Min Read
* C$ at C$1.0445 vs US$, or 95.74 U.S. cents * Canada dollar consolidates after last week's slide * U.S. Federal Reserve policy meeting in focus * Canadian bond prices mixed across the curve By Leah Schnurr TORONTO, Oct 28 (Reuters) - The Canadian dollar strengthened against the greenback on Monday, recovering some of its recent sharp drop, though investors were cautious ahead of a meeting of Federal Reserve policymakers later this week. Highlighting weaker-than-expected growth and inflation figures, the Bank of Canada last week dropped any mention of eventual rate increases from its latest policy statement, leading to expectations among analysts that rates will stay low for longer. The central bank has kept its key rate at 1 percent since 2010, and analysts said the removal of its rate-rise bias gives its policy stance a more neutral tone. The policy shift took the "loonie" to a 1-1/2-month low by Friday and the currency lost 1.6 percent for the week. "We're in that zone where the Bank of Canada has set its tone now for a little bit here - growth forecasts down and interest rate hikes on the distant horizon," said Don Mikolich, executive director of foreign exchange sales at CIBC World Markets. The Canadian dollar ended the North American session at C$1.0445 versus the greenback, or 95.74 U.S. cents, stronger than Friday's close of C$1.0455, or 95.65 U.S. cents. Traders may get further insight in the Bank of Canada's decision on Tuesday when BoC Governor Stephen Poloz appears before a parliamentary finance committee in Ottawa. Investors also had their focus on the Federal Reserve's two-day meeting, starting on Tuesday, though the U.S. central bank was expected to hold the line on its economic stimulus efforts. The Fed surprised markets in September with its decision to continue its bond-buying program at a $85 billion a month pace, rather than trimming the amount. The Canadian dollar touched a three-month high following that announcement, but has weakened since. "We're basically just consolidating after last week," said Scott Smith, senior market analyst at Cambridge Mercantile Group in Calgary. "The change in the Bank of Canada stance on interest rates and the outlook for monetary policy in Canada has really trumped that risk-on atmosphere in the 'loonie' that we got from the delay in tapering," he added. Barring any surprises, the Canada dollar is likely to trade in a range between the low C$1.05 area and the high C$1.03 levels, said Smith. Also on the data horizon this week is Canadian gross domestic product for August, due on Thursday. Canadian government bond prices were mixed across the maturity curve. The two-year bond was unchanged to yield 1.088 percent, and the benchmark 10-year bond slipped 2 Canadian cents to yield 2.424 percent.
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https://www.reuters.com/article/markets-canada-dollar-bonds-idCAL1N0LX28Z20140228?edition-redirect=ca
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CANADA FX DEBT-C$ firms on stronger-than-expected economic growth
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CANADA FX DEBT-C$ firms on stronger-than-expected economic growth
By 0 Min Read
* Canadian dollar at C$1.1074 or 90.30 U.S. cents * Bond prices lower across the maturity curve By Leah Schnurr TORONTO, Feb 28 (Reuters) - The Canadian dollar firmed against the greenback on Friday after data showed the domestic economy grew at a faster-than-expected pace in the final months of last year. Canada's economy expanded at a 2.9 percent annualized rate in the fourth quarter, surpassing the 2.5 percent economists had forecast. Growth for the first two quarters of 2013 was also revised higher. "All told, a pretty decent quarter, which is a bit ahead of what the Bank of Canada had forecast," said David Tulk, chief Canada macro strategist at TD Securities in Toronto. After some choppy reaction immediately after the report, the Canadian dollar strengthened. Investors also took in data south of the border that showed U.S. growth in the fourth quarter was revised lower. The Canadian dollar ended the North American session at C$1.1074 to the greenback, or 90.30 U.S. cents, stronger than Thursday's close of C$1.1136, or 89.80 U.S. cents. The loonie also got some lift from investors squaring positions on the last day of the month, said Greg Anderson, global head of foreign exchange strategy at BMO Capital Markets in New York. "Markets came into month-end short Canadian dollar, so the fact that they were buying back some of those shorts throughout the morning is not a surprise," Anderson said. The loonie firmed in the first three weeks of February, but dropped sharply last week after disappointing wholesale trade data and has been drifting sideways since. The greenback weakened 0.6 percent against the Canadian dollar for the month. "I think this consolidation phase that we've been in since the beginning of February is probably something that won't go away any time soon. We're still likely to see a bit more sideways price action and even lower levels in U.S. dollar-Canadian dollar, in my mind," said Greg Moore, senior currency strategist at Royal Bank of Canada in Toronto. The Bank of Canada meets next week and is expected to hold rates at 1 percent. Investors will be watching the accompanying statement closely for any changes in language. "Given the fact that there's not really much ahead of the Bank of Canada meeting next week and expectations heading into that are fairly neutral - that they're not going to be able to change their message - suggests we're not going to get much new to drive the Canadian dollar lower," said Moore. Canadian government bond prices were lower across the maturity curve, with the two-year off 2 Canadian cents to yield 1.001 percent and the benchmark 10-year down 17 Canadian cents to yield 2.433 percent.
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https://www.reuters.com/article/markets-canada-dollar-bonds-idCAL1N0M21AZ20140305?edition-redirect=ca
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CANADA FX DEBT-C$ firms as Bank of Canada maintains neutral tone
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CANADA FX DEBT-C$ firms as Bank of Canada maintains neutral tone
By 0 Min Read
* Canadian dollar at C$1.1053 or 90.47 U.S. cents * Bank of Canada says still concerned about weak inflation * Bond prices mixed By Leah Schnurr TORONTO, March 5 (Reuters) - The Canadian dollar firmed against the greenback on Wednesday as analysts interpreted a policy statement from the Bank of Canada as maintaining the bank's neutral policy stance. The Bank of Canada held rates at 1 percent, and it continued to express concern about weak inflation and repeated that its next move on interest rates could be either up or down. After some choppy initial reaction, the Canadian dollar ultimately gained ground against the U.S. dollar as analysts said the central bank had not changed its tone significantly from its last statement in January. "At the end of the day, the bottom line is the same. Everything is data dependent, (and) on hold for the foreseeable horizon," said Don Mikolich, executive director of foreign exchange sales at CIBC World Markets in Toronto. "All told, not that much to move us out of our range. I think we're still stuck in this C$1.10 to mid-C$1.11s," Mikolich said. The currency is unlikely to have much reason to move out of that range until Friday's release of employment and trade data, he said. The Canadian dollar was at C$1.1053 to the greenback, or 90.47 U.S. cents, stronger than Tuesday's close of C$1.1100, or 90.09 U.S. cents. The Bank of Canada shifted to a more dovish policy stance last year and left the door open to a cut in interest rates in its January policy statement, saying it was concerned about the weak inflation environment. The loonie had a positive tone going into Wednesday's statement, with some support from data overseas that showed robust growth in the global services sector last month. That was in contrast with recent data that showed manufacturing growth in Europe and Asia slowed in February. Markets were generally less nervous about geopolitical risk on Wednesday than they had been earlier in the week as the United States and Russia were set to hold talks on easing tension over Ukraine. Canadian government bond prices were mixed across the maturity curve, with the two-year off 0.1 Canadian cent to yield 1.030 percent and the benchmark 10-year up 6 Canadian cents to yield 2.463 percent.
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59f79e673e48f2d4df6e89207fcd3ce2
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https://www.reuters.com/article/markets-canada-dollar-bonds-idCAL1N0MW1ED20140404?edition-redirect=ca
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CANADA FX DEBT-C$ hits 1-month high after strong domestic jobs report
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CANADA FX DEBT-C$ hits 1-month high after strong domestic jobs report
By 0 Min Read
* Canadian dollar at C$1.0981 or 91.07 U.S. cents * Bond prices higher across the maturity curve (Adds details, quote, updates prices) By Leah Schnurr TORONTO, April 4 (Reuters) - The Canadian dollar firmed against the greenback on Friday to its strongest in nearly a month, bolstered by data showing the domestic economy added twice as many jobs as expected in March. Employers created 42,900 jobs last month, well ahead of the 20,000 that analysts had expected, while the unemployment rate declined for the first time this year, to 6.9 percent. The gain comes on the heels of a loss of 7,000 jobs in February. "This is really positive for the loonie, it gives people a sense of confidence that was almost nonexistent two or three weeks ago," said Rahim Madhavji, president at KnightsbridgeFX.com in Toronto. At the same time, separate data south of the border showed U.S. employers kept up a steady pace of hiring last month with 192,000 new jobs. Still, the figure was slightly below expectations and the divergence between the U.S. and Canadian numbers helped further support the loonie. "The combination of an as-expected U.S. report and a solid Canadian number has given the Canadian dollar a bit of a boost," said Doug Porter, chief economist at BMO Capital Markets in Toronto. "I don't believe either report is a real game changer, I don't think either one changes the broader landscape of the North American economy, but at least for today this is a nice boost for the loonie." The Canadian dollar ended the North American session at C$1.0981 to the greenback, or 91.07 U.S. cents, stronger than Thursday's close of C$1.1039, or 90.59 U.S. cents. The loonie hit a session high of C$1.0957 shortly after the jobs reports were released, the highest level since early March. For the week, the U.S. dollar depreciated 0.6 percent against the Canadian dollar. The strong jobs report at home was still unlikely to alter the Bank of Canada's stance, analysts said. The central bank has been a major driver of the Canadian dollar's direction since it shifted the tone of its policy last year. The data pushed the loonie through the C$1.10 level, which had served as significant resistance. Since touching a 4-1/2-year low two weeks ago, the loonie has rebounded but the grind higher has been slow. "I think the Canadian dollar may be in a short-term up trend, (but) I think it's still facing a lot of resistance," said Madhavji. The loonie will likely see a range of C$1.08 to C$1.11, he said. Canadian government bond prices were higher across the maturity curve, with the two-year was up 2 Canadian cents to yield 1.091 percent, and the benchmark 10-year was up 47 Canadian cents to yield 2.496 percent. (Additional reporting by Andrea Hopkins; Editing by Meredith Mazzilli)
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https://www.reuters.com/article/markets-canada-dollar-bonds-idCAL2E8D7KBZ20120207?edition-redirect=ca
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CANADA FX DEBT-C$ firms on Greek debt deal hopes
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CANADA FX DEBT-C$ firms on Greek debt deal hopes
By 3 Min Read
(Adds details, analyst comments)
* C$ ends at C$0.9948 to the US$, or $1.0052
* Greek debt deal progress lifts market
* Bond prices mostly lower
By Jon Cook
TORONTO, Feb 7 (Reuters) - The Canadian dollar firmed against its U.S. counterpart on Tuesday, as commodities were boosted by renewed optimism that a Greek debt deal was near.
A range of commodity linked currencies like the Canadian dollar rallied on news Greece was close to terms on a bailout, after a Greek official said Athens was drafting a list of austerity reforms needed to clinch a new financial package.
Failure to secure the 130 billion euro ($170 billion) rescue would mean Greece faces a messy debt default that could destabilise the entire European Union.
“The worst-case scenario, which is a disorderly default and Greece being cut off from the EU, no longer seems imminent,” said David Woo, head of global rates and currencies research at Bank of America Merrill Lynch. “From the market’s standpoint, at least for the time being, more orderly conditions are going to prevail.”
The Canadian dollar finished at C$0.9948 to the U.S. dollar, or $1.0052, up slightly from Monday’s finish of C$0.9955, or $1.0045.
Canada’s move against the greenback trailed the euro’s, which hit an eight-week high at $1.3270 against the U.S. currency.
“People look at the Canadian dollar as basically a very low-beta U.S. dollar,” said Woo. “So when the U.S. dollar goes down the Canadian dollar is not going to go up as much against the U.S. dollar than some of the other currencies.”
Despite the Canadian currency’s rise above the 1-to-1 level with the U.S., some analysts predict it will end the year significantly weaker.
On Tuesday, Capital Economics forecast the Canadian dollar will finish the year around 92 U.S. cents, predicting more problems in the euro zone will hobble the global economy.
In central bank news, Federal Reserve Chairman Ben Bernanke renewed a pledge to prevent Europe’s crisis from damaging the U.S. economy in congressional testimony that mirrored his remarks last week.
Last month, Bernanke stirred markets when the Fed predicted interest rates would stay on hold until at least late 2014, sparking speculation there could also be another round of quantitative easing.
“We know that Mr. Bernanke has been a fan of QE and there’s always talk of could there be further influences?” said C.J. Gavsie, managing director of foreign exchange sales at BMO Capital Markets.
Gavsie said he saw the Canadian dollar staying close to current levels - likely in a range between C$0.9960 and C$1.0030 - and that a push towards Monday’s high of C$0.9930 would be unlikely without a Greek deal.
Canadian bond prices were mostly lower, with the two-year bond down four Canadian cents to yield 1.043 percent. The 10-year bond fell 60 Canadian cents to yield 2.041 percent. (Editing by Jeffrey Hodgson)
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CANADA FX DEBT-C$ skids to snap 4 days of gains, but up on week
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CANADA FX DEBT-C$ skids to snap 4 days of gains, but up on week
By Jennifer Kwan3 Min Read
* Ends at C$0.9886 vs US$, or $1.0115
* Up about 1 percent for the week
* Bond prices rise across the curve
TORONTO, March 2 (Reuters) - The Canadian dollar retreated against its U.S. counterpart on Friday after touching a year-high this week, as the greenback climbed broadly amid a risk-off tone in global markets.
The euro fell against the U.S. dollar on revived worries about Europe’s fiscal stability, while oil prices sank after touching 3-1/2 year highs and the stronger greenback weighed on gold prices.
“Equities are lower; commodities are lower, led by crude oil being down by two bucks. That, combined with the broader base U.S. dollar bid, has contained the dollar/Canada move today and positions are being squared against the weekend,” said Jack Spitz, managing director of foreign exchange at National Bank Financial.
The Canadian dollar ended at C$0.9886 versus the U.S. dollar, or $1.0115, down from Thursday’s North American finish at C$0.9859 versus the U.S. dollar, or $1.0143.
The only key economic data point of note for Canada was fourth-quarter growth data, but that failed to push the currency significantly in either direction, market observers said.
Canadian economic data showed growth had fallen to an annualized 1.8 percent in the fourth quarter from an upwardly revised 4.2 percent in the third, leaving the Bank of Canada with room to keep interest rates at historic lows.
The growth rate was exactly as expected in a Reuters survey of analysts but fell short of the 2.0 percent the Bank of Canada had predicted in its January Monetary Policy Report.
“The GDP showed softer growth in Canada and the data was not sufficient to break the bias for a U.S. dollar bid or take the Canadian dollar out of its consolidated trading range,” said Spitz, referring to levels of C$0.9850 to C$0.9900 against the greenback.
Camilla Sutton, chief currency strategist at Scotia Capital, said the data was pretty much expected and overall growth is still fairly modest.
“There’s nothing in the data release that would be concerning. I think that’s positive, but it’s likely a CAD neutral,” she said.
Still, the Canadian dollar appreciated about 1 percent against the greenback for the week, according to Thomson Reuters data. The gains came on the back of a huge cash injection by the European Central Bank to stabilize the region’s financial problems, along with solid U.S. labor market data and a generally elevated oil prices.
On Thursday, the currency hit C$0.9942 to the U.S. dollar, or $1.0161, its strongest level since Sept. 19.
“The Canadian dollar is higher across the board on the crosses. Much of that has to do with the month-end flows that hit the market two days ago. The Canadian dollar was a star performer,” said Spitz, referring to the currency’s performance for the week.
Canadian bond prices edged higher across the curve, with the two-year bond up 3 Canadian cents to yield 1.108 percent. The 10-year bond gained 35 Canadian cents to yield 1.965 percent.
Our Standards: The Thomson Reuters Trust Principles.
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CANADA FX DEBT-C$ firms on Greek hopes
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CANADA FX DEBT-C$ firms on Greek hopes
By 0 Min Read
* C$ up at C$0.9953 vs US$, or US$1.0047 * Greek bond swap hopes boost sentiment * Bond prices mostly lower By Jon Cook TORONTO, March 8 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Thursday on indications that major European banks and pension funds are likely to take part in the Greek bond swap deal, easing concerns about a chaotic default. However, markets are expected to remain cautious ahead of the formal announcement on the Greek deal, as well as Friday's keenly watched U.S. jobs report, while the Bank of Canada and other central banks are being closely monitored for signs they will keep promoting growth. "It looks like the market is getting more and more optimistic that the bond swap is going to get done without too much pain and that's put the market in risk-on mode," said Steve Butler, a director of foreign exchange trading at Scotia Capital. At 7:45 a.m. (1245 GMT), the Canadian dollar stood at C$0.9953 against the greenback, or $1.0047, up from Wednesday's North American session close at C$0.9982 versus the U.S. dollar, or $1.0018. Canada's commodities-reliant currency was supported by a rise in oil on Thursday, with prices topping $125 a barrel after a Greek government official said its bond swap offer was going well as banks and funds showed support. Later on Thursday, Bank of Canada Governor Mark Carney will report results from the central bank's policy meeting, where it is expected to keep the overnight interest rate at its current 1 percent. "That's the expectations, but I've heard some very mild chatter that we might see a slightly less dovish statement from the Bank," said Butler. "It all really hinges upon that because we all know there's going to be no movement in rates today." Canadian housing data released on Thursday was not expected to move the currency. Butler said the Canadian currency should find support at C$0.9990 and resistance at C$0.9920, but added a good Greek result and solid U.S. jobs numbers could move the currency back towards last week's high at C$0.9842. Canadian bond prices were mostly lower, with the two-year bond unchanged at a yield of 1.125, while the 10-year bond dropped 5 Canadian cents to yield 1.974 percent.
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CANADA FX DEBT-C$ dips on weak Chinese data, doubts on Fed
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CANADA FX DEBT-C$ dips on weak Chinese data, doubts on Fed
By 3 Min Read
* C$ ends at C$0.9927 vs US$, or $1.0074
* Weak China export data weighs, markets await Fed
* M&A talk supports Canadian currency
* Bond prices move higher across the curve
By Claire Sibonney
TORONTO, March 12 (Reuters) - The Canadian dollar eased against its U.S. counterpart on Monday as weak Chinese export data hurt commodities and as investors remained skeptical that the U.S. Federal Reserve would hint at more steps to stimulate the economy at its meeting on Tuesday.
Data released over the weekend by China showed the commodity-consuming giant posted its biggest trade deficit in at least a decade in February, fanning concerns about growth in the world’s second largest economy.
“When we look at the return profile, the commodity currencies are underperforming as a group,” said Camilla Sutton, chief currency strategist at Scotia Capital.
“That’s indicative of the confusing data we got from China because of the way the Lunar New Year fell. I think there’s some hope that potentially it’s not as negative as it looks on the headline ... but it’s going to be hard to know that for sure until next month.”
Many market watchers cautioned against reading too much into the data, given the underlying volatility caused by the Chinese holiday that saw a week-long factory shut down in January and February.
In addition, recent signs of improvement in the United States, the world’s biggest economy, have dampened hopes of more monetary policy easing by the Federal Reserve. Tuesday’s meeting could see the Federal Open Market Committee acknowledge the recent spate of stronger data, although traders will be on the lookout for any signals about possible additional stimulus.
The Canadian dollar ended the North American session at C$0.9927 versus the U.S. dollar, or $1.0074, down slightly from Friday’s close at C$0.9909 versus the U.S. dollar, or $1.0092.
The currency has recently traded within a tight window near parity with the greenback, but has been strong recently against other currencies.
Sutton said recent M&A activity, including talk of a takeover of Viterra, Canada’s largest grain holder, has helped the currency.
“Part of it could be M&A because typically any large M&A announcement has, one, the cash impact, but also the psychological impact of reminding market participants that Canada has a lot of interesting assets that can be M&A targets in the future.”
Sutton expects the Canadian dollar’s range to stay between C$0.9875-C$0.9975 against the U.S. dollar over the next day.
Canadian bond prices pushed up across the curve, tracking a rise in U.S. Treasuries as higher yields and the possibility of market-friendly Fed policy this week supported the bid for safe-haven government debt.
Canada’s he two-year bond was up 1 Canadian cent to yield 1.171 percent, while the 10-year bond added 7 Canadian cents to yield 2.001 percent.
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https://www.reuters.com/article/markets-canada-dollar-bonds-idCAL2E8EDJ6D20120313?edition-redirect=ca
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CANADA FX DEBT-C$ climbs on supportive economic outlook
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CANADA FX DEBT-C$ climbs on supportive economic outlook
By Claire Sibonney3 Min Read
* C$ ends at C$0.9892 vs US$, or $1.0109
* Bond prices track Treasuries lower
TORONTO, March 13 (Reuters) - Canada’s dollar climbed against the greenback in narrow and choppy trade on Tuesday after the Federal Reserve acknowledged recent signs of strength in the U.S. economy.
The Fed provided few clues on the prospects for further monetary easing in its policy statement, but offered a slight upgrade to its economic outlook while restating concerns about the high level of unemployment.
Reaction to the statement was wobbly, with no new signals for stimulus initially interpreted as U.S.-dollar positive, and negative for the Canadian dollar, which briefly touched a session low.
“I think that the market response is limited by the very nature of the Fed statement that brought forward limited changes,” said Stewart Hall, senior currency strategist at RBC Capital Markets.
“I think expectations were already set pretty low going into this meeting, given the fact that there was no follow-up press conference and the expectation being for a more fulsome explanation of Fed sentiment coming in April.”
Appetite for riskier assets such as stocks and commodities was already fueled by data showing that U.S. retail sales in February marked their biggest gains five months and German economic sentiment had risen more than expected.
The Canadian dollar ended the North American session at C$0.9892 versus the U.S. dollar, or $1.0109 , up from Monday’s close at C$0.9927 versus the U.S. dollar, or $1.0074.
Canada’s currency also outperformed on the crosses, trading around year-to-date highs against the euro and Australian dollar, and a six-month peak against the British pound.
“Much of the outperformance has been on the back of an improvement in the outlook for the U.S. economy,” Camilla Sutton, chief currency strategist at Scotia Capital, said in a note to clients. She pointed out a stronger Mexican peso also gaining as a North American play.
RBC sees medium-term support for the U.S. dollar versus Canada’s around C$0.9843 and resistance at C$1.0051.
Canadian bond prices were lower across the curve, tracking U.S. Treasuries higher after the Fed statement eroded some of the allure of safe-haven government debt.
The two-year bond was down 6 Canadian cents to yield 1.203 percent, while the 10-year bond knocked off 52 Canadian cents to yield 2.058 percent.
Our Standards: The Thomson Reuters Trust Principles.
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CANADA FX DEBT-C$ firms with stocks, commodities; eye on EU summit
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CANADA FX DEBT-C$ firms with stocks, commodities; eye on EU summit
By 0 Min Read
* Currency ends up at C$1.0240 vs US$ or 97.66 U.S. cents * C$ higher with North American equities, commodities * Bond prices slip across curve By Claire Sibonney TORONTO, June 26 (Reuters) - Canada's dollar edged up against its U.S. counterpart on Tuesday, tracking North American equities and commodities higher, but the gains were seen as fragile before a European Union debt crisis summit this week. Wall Street marked a modest rebound on the back of upbeat data on home prices, but trading is expected to be volatile ahead of the two-day meeting of EU leaders that begins Thursday. "The highest correlation for the Canadian dollar right now is the U.S. stock market. Throughout this year it's been higher than any other currency pair," said Adam Button, currency analyst at ForexLive in Montreal. Although investors do not have high hopes about the EU summit, any progress made at the meeting in terms of heightening cooperation to tackle the region's 30-month long debt crunch co u ld bring back appetite for risky assets. "It will be a watershed moment for the rest of summer trading," added Button. "This will set us up for a long period of disappointment and Canadian dollar weakness or potentially some stability and optimism which would lead to the Canadian dollar back over parity." The Canadian currency ended the North American session at C$1.0240 to the greenback, or 97.66 U.S. cents, stronger than Monday's finish at C$1.0292 to the greenback, or 97.16 U.S. cents. In the short-term, Button said the currency will most likely trade between C$1.01 versus the U.S. dollar, or 99 U.S. cents, and C$1.04, or 96.15 U.S. cents. The Canadian dollar has had a bumpy ride so far this year, swinging from its high above parity with the greenback at $1.02 in April to its low below 96 U.S. cents a few weeks ago. Some analysts expect an even sharper depreciation, despite the fact that the currency is down less than 1 percent year to date. In a research note on Tuesday, Capital Economics predicted the Canadian dollar will weaken to 92 U.S. cents by the end of this year and 86 U.S. cents by the end of 2013. The research firm said the forecast was based partly on the prospect of further declines in commodity prices. Canadian bond prices retreated across the curve, largely mimicking U.S. Treasuries, as investors pushed for price concessions in auctions of new U.S. debt this week. The two-year Canadian government bond fell 4 Canadian cents to yield 1.01 percent, while the benchmark 10-year bond lost 19 Canadian cents to yield 1.748 percent.
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https://www.reuters.com/article/markets-canada-dollar-bonds-idCAL2E8I61UJ20120706?edition-redirect=ca
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CANADA FX DEBT-Canadian dollar dips ahead of jobs data
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CANADA FX DEBT-Canadian dollar dips ahead of jobs data
By 0 Min Read
* C$ down at $1.0154 vs US$, or 98.48 U.S. cents * Bond prices creep up across curve TORONTO, July 6 (Reuters) - The Canadian dollar drifted lower against the greenback on Friday, tracking a drop in global equities and commodity prices ahead of critical North American jobs data. U.S. employers are expected to have added 90,000 new workers to their payrolls in June, according to a Reuters survey of economists. That rise would be modest but still better than the 69,000 jobs created in May, which was the fewest in a year. In Canada, the economy likely created a paltry 5,000 new jobs in June, for a second straight month of sluggish hiring as employers worried about fallout from the European debt crisis and the stalled U.S. economy. Both reports are due at 8:30 a.m. (1230 GMT). At 7:51 a.m., the Canadian currency was at C$1.0154 versus the U.S. dollar, or 98.48 U.S. cents, slightly weaker than Thursday's North American session close of C$1.0144 against its U.S. counterpart, or 98.58 U.S. cents. Jeremy Stretch, head of currency strategy at CIBC in London, said unless market participants see a materially stronger-than expected Canadian labor market, the Canadian dollar should see solid resistance near the 200-day moving average of C$1.0116 and its high of C$1.0100 hit on Thursday. South of the border, better-than-expected jobs data on could be a positive for risk assets, or negative if markets interpret it as suggesting the U.S. Federal Reserve will be less likely to take further steps to stimulate the economy. Meanwhile, investors remained unimpressed after a trio of major central banks loosened monetary policy on in the previous session. Spanish 10-year government bond yields extended their rise past 7 percent on Friday, a level which is not a sustainable borrowing rate indefinitely. Canadian bond prices edged up across the curve. Canada's two-year government bond rose 4 Canadian cents to yield 1.010 percent, while the benchmark 10-year bond added 11 Canadian cents to yield 1.709 percent.
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https://www.reuters.com/article/markets-canada-dollar-bonds-idCAL2E8JFDWB20120815?edition-redirect=ca
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CANADA FX DEBT-C$ hits 3-month high vs US$, record vs euro
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CANADA FX DEBT-C$ hits 3-month high vs US$, record vs euro
By 0 Min Read
* Canada dollar ends at C$0.9890 vs US dollar, or $1.0111 * C$ hits session high of C$0.9887 vs US$, or $1.0114 * C$ rallies to record high against euro * Bond prices fall across the curve By Solarina Ho TORONTO, Aug 15 (Reuters) - The Canadian dollar hit its highest level against its U.S. counterpart in more than three months on Wednesday and climbed to a record peak against the euro after U.S. economic data supported the possibility of further stimulus by the U.S. Federal Reserve. U.S. consumer prices were flat in July for a second straight month and the year-over-year increase was the smallest in more than 1-1/2 years, giving the Fed room to ease policy further to tackle high unemployment. The Canadian currency advanced against many of its peers, including a broadly weaker euro. The euro hit a record trough of C$1.2135 against the Canadian dollar, or 82.41 euro cents. The Canadian dollar hit an intraday high C$0.9887 versus the U.S. dollar, or $1.0114, its strongest level since May 4. The currency closed at C$0.9890 against the greenback, or $1.0111, up from Tuesday's North American session close at C$0.9919, or $1.0082. "I think people ... are surprised by the consistent strength of the Canadian dollar," said David Bradley, director of foreign exchange trading at Scotiabank, who also noted an interest to sell USD/CAD around the London fix. A recent slew of supportive economic data, global stimulus hopes and comments by the Bank of Canada have combined to power the Canadian dollar toward May highs. "It seems like Canada's going to continue to do better," said Bradley. The Canadian dollar was also notably stronger versus its commodity-linked counterparts, touching a one-month high against the Australian dollar. The Aussie dollar was hurt after Moody's ratings agency said it might eventually downgrade the credit ratings of some Australian states. "We are seeing continued outperformance of North American currencies," said Audrey Childe-Freeman, head of foreign exchange strategy for BMO Capital Markets in London. "I like to play the bullish Canadian dollar view on the crosses and in particular against the Aussie dollar," she added. Canadian bond prices retreated, underperforming U.S. Treasuries as investors weighed whether the Fed is likely to launch new stimulus in September and as concerns over Europe ebbed with a lack of new, negative headlines. The two-year bond slid 12 Canadian cents to yield 1.248 percent, and the benchmark 10-year bond dropped 76 Canadian cents to yield 1.943 percent.
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https://www.reuters.com/article/markets-canada-dollar-bonds-idCAL2N0CR1N020130404?edition-redirect=ca
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CANADA FX DEBT-C$ strengthens to 6-week high as euro rallies
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CANADA FX DEBT-C$ strengthens to 6-week high as euro rallies
By 0 Min Read
* C$ ends at C$1.0123 or 98.78 U.S. cents * Euro, U.S. dollar soar against yen after BOJ stimulus * C$ breaks through 50-day moving average By Andrea Hopkins TORONTO, April 4 (Reuters) - The Canadian dollar strengthened to a six-week high against its U.S. counterpart on Thursday, joining a rally in the euro against the greenback following supportive comments from the European Central Bank. The Canadian currency, which often trades on global growth prospects, erased early losses to trade stronger after ECB President Mario Draghi said the bank stood ready to act if growth continues to languish. "As euro strengthened, CAD strengthened, suggesting it was very much about what was transpiring globally, particularly in Japan as well as the ECB," said Camilla Sutton, chief currency strategist at Scotiabank. "It highlights that relative central bank policies are very important for currencies." The Bank of Japan had earlier unleashed the world's most intense burst of monetary stimulus, promising to inject about $1.4 trillion into the economy in less than two years, a radical gamble that sent the yen reeling. The Canadian currency climbed as high as C$1.0103 to the U.S. dollar on Thursday, or 98.98 U.S. cents, its strongest showing since Feb. 19. The Canadian dollar ended the North American session at C$1.0123 to the U.S. dollar, or 98.78 U.S. cents, up from Wednesday's North American session close at C$1.0145 to the greenback, or 98.57 U.S. cents. "It's been a very good day for Canada in the sense that we made a run for the C$1.01 (level), we've broken out of our range, we've broken through the 50-day (moving average) ... all of that is positive for CAD," Sutton said. Against the sinking yen, the Canadian dollar hit its strongest level since the height of the financial crisis in late 2008. The comments from the ECB head reversed early Canadian dollar weakness on data showing that the number of Americans filing new claims for unemployment benefits hit a four-month high last week, a potential sign the U.S. labor market recovery lost steam in March. That, combined with weaker-than-expected ADP private-sector employment data on Wednesday has analysts ratcheting back expectations for the closely watched monthly U.S. payrolls and unemployment report due out on Friday. Canada's monthly job creation and unemployment rate data are also due out on Friday. Economists polled by Reuters are expecting 8,500 new jobs in Canada for the month of March, a moderation from the unexpected 50,700 surge in February. U.S. nonfarm payrolls are expected to have risen 200,000 in March. The price of Canadian government debt was higher across the curve. The two-year bond was up 1 Canadian cent to yield 0.990 percent while the benchmark 10-year bond rose 38 Canadian cents to yield 1.786 percent.
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https://www.reuters.com/article/markets-canada-dollar-bonds-idCAL2N0CW29Q20130409?edition-redirect=ca
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CANADA FX DEBT-C$ firms against US$; Fed minutes in focus
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CANADA FX DEBT-C$ firms against US$; Fed minutes in focus
By 0 Min Read
* C$ at C$1.0163 vs US$, or 98.40 U.S. cents * Holds near 4-1/2 year highs vs yen * Touches weakest level vs NZD since mid-2005 * Bond prices mostly lower across curve * FOMC minutes on Wed in focus By Solarina Ho TORONTO, April 9 (Reuters) - The Canadian dollar was firmer against its U.S. counterpart on Tuesday as positive Chinese economic data helped bolster investor sentiment toward riskier assets, though moves were limited by a lack of major North American news and data. A solid start to U.S. corporate earnings season and a fall in Chinese inflation in March helped stocks around the world and lifted commodity prices, including copper and oil. "The pair going to just continue to trade sideways for the next few days," said Gareth Sylvester, director at Klarity FX in San Francisco. "Data out of Canada is very light. All housing-centric and none of the individual indicators will be a market mover." The Canadian dollar remained near four-and-a-half-year highs versus the yen following the Bank of Japan's aggressive stimulus policy last week. Mixed Canadian housing data did little to move the currency. Housing starts edged higher in March as rural starts surged, but urban starts declined, while separate data showed the value of Canadian building permits was weaker-than-expected. "We didn't really get that much of a strengthening, much of a reaction off the housing start data," said Mazen Issa, macro strategist at TD Securities. "More recently, in the absence of data and more significant events taking place abroad, the drivers tend to shift toward events abroad." The Canadian dollar finished Tuesday's North American session at C$1.0163 versus the U.S. dollar, or 98.40 U.S. cents, close to the 50-day moving average of C$1.0160, or 98.43 U.S. cents, and stronger than Monday's close of C$1.0173, or 98.30 U.S. cents. Its performance was otherwise weaker against other currencies, as Canada's dollar touched lowest level against the New Zealand dollar since mid-2005. Analysts expect the Canadian dollar to remain under pressure, however. "The market is, overall, of the opinion - comparing U.S. and Canadian economic fundamentals - the U.S. fundamentals are certainly outperforming that of its North American counterpart and that's what's giving the U.S. it's edge against the Canadian dollar," said Sylvester. On Wednesday, focus will turn to the United States, with the release of the FOMC minutes from Fed's March meeting. U.S. retail sales and University of Michigan preliminary sentiment data on Friday could also be market movers. Canadian government bond prices were mostly lower across the curve, with the two-year bond off half a Canadian cent with a yield of 0.995 percent and the benchmark 10-year bond off 4 Canadian cents to yield 1.769 percent.
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https://www.reuters.com/article/markets-canada-dollar-bonds-idCAL2N0CZ0QB20130412?edition-redirect=ca
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CANADA FX DEBT-C$ softens after U.S. data disappoints
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CANADA FX DEBT-C$ softens after U.S. data disappoints
By 0 Min Read
* C$ at C$1.0126 vs US$, or 98.76 U.S. cents * U.S. retail sales unexpectedly fall in March * TD sees C$ seen trading between C$1.0110 and C$1.0175 * Bond prices rise across the curve By Solarina Ho TORONTO, April 12 (Reuters) - The Canadian dollar was weaker against the U.S. dollar on Friday following its best performance in nearly two months on Thursday, after disappointing U.S. data signaled flagging momentum in Canada's largest export market. U.S. retail sales contracted in March for the second time in three months, falling 0.4 percent, which was below analysts' expectations of a flat month in sales. A separate report showed wholesale prices fell sharply last month due to lower gasoline costs. Shaun Osborne, chief currency strategist at TD Securities, said the currency moves on the data were "negligible" and the currency has been consolidating overall this week. "The U.S. numbers tend to reflect a trend that we've seen before ... whereby we see the data through spring tend to disappoint," said Osborne. "Worries about a soft patch start to perhaps percolate through the market. We think it is something we have to keep in mind over the course of the next few weeks here." At 9:19 a.m. (1419 GMT), the Canadian dollar was trading at C$1.0126 versus the U.S. dollar, or 98.76 U.S. cents, weaker than Thursday's close of C$1.0107, or 98.94 U.S. cents. It briefly weakened to a session low of C$1.0137, or 98.65 U.S. cents after the U.S. sales data. The currency's performance was mixed against other major currencies. It was stronger against the euro and also the New Zealand dollar after touching its weakest level since mid-2005. It was weaker than the Australian dollar and the Japanese yen. Against the yen, it had touched its firmest level in about 4-1/2 years earlier this week. For the session, the Canadian dollar was expected to trade between C$1.0110 and C$1.0175, said Osborne. "There's been a pretty decent correction in the Canadian dollar over the last two, three weeks. We're probably close to the Canadian sell levels again," he said, adding he's looking to buy U.S. dollars on dips below C$1.01. The price of Canadian government debt was higher across the curve, with the two-year bond climbing 3 Canadian cents to yield 0.965 percent and the benchmark 10-year bond rising 33 Canadian cents to yield 1.749 percent.
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https://www.reuters.com/article/markets-canada-dollar-bonds-idCAL2N0D20NU20130415?edition-redirect=ca
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CANADA FX DEBT-C$ stumbles as Chinese data hits commodities
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CANADA FX DEBT-C$ stumbles as Chinese data hits commodities
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* C$ at C$1.0197 vs US$, or 98.07 U.S. cents * China growth below economists' expectations * BMO sees C$ between C$1.0170 and C$1.0240 on Monday * Bond prices rise across curve By Solarina Ho TORONTO, April 15 (Reuters) - The Canadian dollar was sharply weaker against the greenback on Monday, dragged lower by commodity prices that were hit by disappointing data out of China. Gold, silver, copper and oil prices were all slammed after data showed China's recovery unexpectedly stumbled in the first three months of 2013, with an annual growth rate of 7.7 percent versus economists' expectations of 8 percent growth. "Obviously the key theme was the soft Chinese data and the impact it had on commodities and commodity currencies. Not surprisingly, Canada has weakened off a little bit," said Matt Perrier, a director of foreign exchange sales at BMO Capital Markets. "We're seeing a small reprieve here as the North American session opens ... a minor rebound in commodities off their lows and you've seen coincidentally a rebound in the Canadian dollar back below C$1.02." At 9:03 a.m. (1403 GMT), the Canadian dollar was trading at C$1.0197 versus the U.S. dollar, or 98.07 U.S. cents, firmly lower than Friday's finish at C$1.0138, or 98.64 U.S. cents. Earlier in the session, it had touched C$1.0226, or 97.79 U.S. cents, it's weakest level in a week. Perrier expects the currency to trade between C$1.0170 and C$1.0240 for the session as it tracks commodity moves. The price of Canadian government debt was higher across the curve, with the two-year bond climbing 1.5 Canadian cents to yield 0.945 percent and the benchmark 10-year bond rising 4 Canadian cents to yield 1.733 percent.
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https://www.reuters.com/article/markets-canada-dollar-bonds-idCAL2N0D42AN20130417?edition-redirect=ca
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CANADA FX DEBT-C$ weaker as Bank of Canada points to tougher times
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CANADA FX DEBT-C$ weaker as Bank of Canada points to tougher times
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* Canadian dollar at C$1.0266 vs US$, or 97.41 U.S. cents * Central bank holds rates, trims growth forecasts * C$ weakest since March 13 after central bank news By Alastair Sharp TORONTO, April 17 (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Wednesday after the Bank of Canada chopped its growth forecasts, although losses were likely restricted by the bank holding to its view that interest rates would need to rise at some point. The loonie, as the currency is colloquially known, stuck to a weakening trajectory after the central bank statement, at one point hitting its weakest level in more than four weeks, but movement was relatively subdued. It would likely have pushed through C$1.03 if the central bank had dropped its eventual tightening bias, one analyst said. "From a trading perspective dollar/CAD buyers were hoping for hints of a more neutral stance, when that didn't come they chose to lighten up their positions," said Adam Button, a currency analyst at ForexLive in Montreal, who also noted strong corporate buying interest as it approached that level. The Canadian dollar ended the session changing hands at C$1.0266 to the greenback, or 97.41 U.S. cents, compared with C$1.0205, or 97.99 U.S. cents, at Tuesday's North American close. The central bank said Canada would likely notch economic growth of 1.5 percent this year, down from its 2 percent forecast in January, and said slack in the economy was continuing to grow. It blamed slower growth in government spending and business investment for the lowered forecast, as well as a sharper contraction in housing activity than it had predicted. The report, in which the central bank also stuck to its oft-repeated view that its next interest rate move would be a rise, helped solidify the loonie's position in the high C$1.02s against the U.S. dollar. After a brief bump stronger right after the report was released, the currency "faded off, likely because of the outlook for growth and the headwinds facing the domestic economy," said Camilla Sutton, chief currency strategist at Scotiabank. At one point it hit C$1.0295, its weakest point since March 13. It might have weakened further if the bank had removed its tightening bias altogether, as some economists had predicted it would. "That hawkish tinge helped the loonie weather so far the bank's forecast for growth to slow," Joe Manimbo, a senior market analyst at Western Union Business Solutions, wrote in a note. Canada, which recovered quicker from the global financial crisis than most developed economies, has eschewed the unconventional monetary easing proving so popular at the U.S. Federal Reserve, the Bank of England, and now in drastic fashion at the Bank of Japan. The Bank of Canada is "following a very similar script to the last statement and there really hasn't been much in the way of any significant change," said Darcy Briggs, a fixed-income portfolio manager with the Bissett unit of Franklin Templeton Investments. "We haven't seen too much in the way of any significant market reaction out of that." The price of Canadian government debt rose across the curve, with the two-year bond up 1 Canadian cent to yield 0.933 percent, while the benchmark 10-year bond rose 23 Canadian cents to yield 1.712 percent. Yields on overnight index swaps, which trade based on expectations for the policy rate, showed traders slightly scaled back their bets of a rate cut later this year.
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https://www.reuters.com/article/markets-canada-dollar-bonds-idCAL2N0DA2A220130423?edition-redirect=ca
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CANADA FX DEBT-C$ limps to fifth day of range-bound play
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CANADA FX DEBT-C$ limps to fifth day of range-bound play
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* C$ at C$1.0262 vs US$, or 97.45 U.S. cents * Retail sales rise more than expected, but volumes flat * German, Chinese data spark concerns about global economy * Bond prices rise across curve By Solarina Ho TORONTO, April 23 (Reuters) - The Canadian dollar was little changed against its U.S. counterpart on Tuesday as the currency consolidated after last week's volatility, while soft economic data also kept investor sentiment subdued. For the fifth straight day, the Canadian dollar finished within a tight 11-point range between C$1.2059 and C$1.2070 after weakening some 1.2 percent early last week in reaction to plummeting commodity prices. "Things have calmed down ... It looks like we're in for a period of consolidation," said John Curran, senior vice president at CanadianForex. Canadian retail sales for February rose a greater-than-expected 0.8 percent from January, but in volume terms, which is a more important GDP measure, sales were flat. "At the end of the day, we're still going to focus on Canadian fundamentals. The numbers today were okay. Going longer term, I believe the slowdown in Canada will occur and we will see the Canadian dollar weaken off," Curran added. Canada's dollar finished the North American session at C$1.0262 versus the U.S. dollar, or 97.45 U.S. cents, little changed from Monday's North American finish at C$1.0261, 97.46 U.S. cents. The Canadian dollar was mostly outperforming other major currencies. It touched its strongest level against the Australian dollar in more than a month. A reasonable degree of top side interest was likely containing the currency from pushing through C$1.03, said Jeremy Stretch, head of foreign exchange strategy at CIBC World Markets in London. He added that the Canadian dollar could test the C$1.0295 level in the near term. "It's remarkably tightly ranged in the short term. It does feel that we have a cautious top side bias," said Stretch. "You could partly attribute that to the backwash from the Chinese PMI data ... There's certainly a bias toward slightly more risk aversion earlier in the session in the wake of the German manufacturing PMI numbers." German PMI data showed a sharp drop in the country's business activity, fanning concerns about the euro zone economy, while growth in China's vast factory sector also dipped in April as new export orders shrank, suggesting China still faces formidable global headwinds in the second quarter. U.S. factory activity expanded at its slowest pace in six months in April, the latest signal that economic growth was losing momentum in the second quarter. U.S. data released for the remainder of this week, including gross domestic product figures on Friday, will be the focal point for the currency. Canadian government bond prices were lower across the curve, with the two-year bond off less than half a Canadian cent with a yield of 0.947 percent, while the benchmark 10-year bond was down 13 Canadian cents to yield 1.725 percent.
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https://www.reuters.com/article/markets-canada-dollar-bonds-idCAL2N0E50PY20130524?edition-redirect=ca
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CANADA FX DEBT-C$ tracks equities retreat as Fed concerns weigh
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CANADA FX DEBT-C$ tracks equities retreat as Fed concerns weigh
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* C$ at C$1.0326 vs US$, or 96.84 U.S. cents * Equity and currency markets volatile on Fed stimulus concerns * Bond prices generally higher across curve By Solarina Ho TORONTO, May 24 (Reuters) - The Canadian dollar retreated against the U.S. dollar on Friday, in sync with weaker global equity markets and other commodity currencies, as investors worried that the U.S. Federal Reserve could rein in its stimulus policy. Equity markets have hit their highest levels in years in recent weeks, bolstered by stimulus measures taken by the Fed and other central banks. Worries that the Fed may begin tapering its $85 billion a month bond purchases sent a gauge of global equity markets to its second biggest daily loss of the year on Thursday. "We're still seeing heightened volatility in currency markets. A lot of that is obviously relating to some of the equity market activity," said Blake Jespersen, managing director, foreign exchange sales, adding that the Canadian dollar was in a consolidation mode. "It seems to be comfortable trading around the C$1.0350 area and it doesn't look like we'll see a lot more weakness over the coming day or so. I think we've flushed out some of the overly long U.S. dollar positions in the last day or so." At 9:55 a.m. (1355 GMT), the Canadian dollar was trading at C$1.0326 against the U.S. dollar, or 96.84 U.S. cents, after ending Thursday's North American session C$1.0294, or 97.14 U.S. cents. The currency, which is trading around its weakest level in about 11 months, has shed some 3.2 percent since May 8, when it closed at C$1.0030, its strongest finish since mid-February. It was weaker against most other major currencies, except for its commodities peers, the Australian and New Zealand dollars, which were the weakest performers. Jespersen expected the Canadian dollar to trade between C$1.0320 and C$1.0350 on Friday. Investors are unlikely to build fresh positions ahead of a long weekend in the United States and in Britain and Jespersen said the market may see a little bit of profit taking on the long U.S. dollar positions that have built up significantly in recent weeks. "The U.S. rally is somewhat intact, it's just taking a little bit of a breather as we end the week here," he said. Prices for Canadian government debt were mostly higher, with the two-year bond adding half a Canadian cent to yield 1.034 percent and the benchmark 10-year bond up 9 Canadian cents to yield 1.951 percent.
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https://www.reuters.com/article/markets-canada-dollar-bonds-idCAL2N0GE1MA20130813?edition-redirect=ca
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CANADA FX DEBT-C$ weaker as U.S. retail sales boost greenback
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CANADA FX DEBT-C$ weaker as U.S. retail sales boost greenback
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* C$ at C$1.0343 vs US$ or 96.68 U.S. cents * U.S. retail sales climb at fastest pace in 7 months * Bond prices lower across curve By Alastair Sharp TORONTO, Aug 13 (Reuters) - The Canadian dollar ended weaker against its U.S. counterpart in quiet trading on Tuesday, with the greenback bolstered by U.S. retail sales data that heightened expectations that the U.S. Federal Reserve is on the verge of scaling back stimulus measures. The loonie, as Canada's currency is colloquially known, gained against the Japanese yen, but was off against the euro and the pound. Retail sales, a key gauge of U.S. consumer spending, rose at the fastest pace in seven months in July, a sign of quicker economic growth that strengthens the case for the Fed to reduce stimulus. "This retail sales number this morning from the U.S. helped jolt markets into moving," said Greg Moore, a currency strategist at TD Securities. "A solid report overall, it reinforces the notion that (Fed) tapering in September should be appropriate. It's not a very strong signal that it will happen...but tapering is essentially on track," he said. Other data on Tuesday showed U.S. small business optimism improving in July, while import prices rose less than expected during the month. The Canadian dollar's moves were subdued, however, with little domestic data to drive direction until manufacturing sales on Friday. "It's the late summer doldrums ... It's pretty benign for now," said Don Mikolich, executive director, foreign exchange sales, at CIBC. Mikolich added that markets are waiting for clear signals about what the Fed might do. "Canada's going to take its cues from those sorts of developments," he said The Canadian dollar ended the day trading at C$1.0343 versus the U.S. dollar, or 96.68 U.S. cents. This was weaker than Monday's North American finish of C$1.0303, or 97.06 U.S. cents. TD's Moore said he expects the currency to trade between C$1.0250 and C$1.0450 through the remainder of the week. Market action is expected to pick up toward the end of the month with the release of Canadian inflation, retail sales and economic growth data. "I think by the end of the month, we'll have a bit of a picture of whether the economy here is still sputtering, or whether we'll see a little bit of trend growth," Mikolich said. Canadian government debt prices were lower across the maturity curve. The two-year bond lost 10.5 Canadian cents to yield 1.202 percent, and the benchmark 10-year bond fell 67 Canadian cents to yield 2.618 percent.
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https://www.reuters.com/article/markets-canada-dollar-bonds-idCAL2N0H21HA20130906?edition-redirect=ca
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CANADA FX DEBT-C$ boost from strong Canadian jobs data, weak US numbers
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CANADA FX DEBT-C$ boost from strong Canadian jobs data, weak US numbers
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* C$ firms to C$1.0409 vs US$, or 96.07 U.S. cents * Bond prices rise across maturity curve By Leah Schnurr TORONTO, Sept 6 (Reuters) - The Canadian dollar rallied on Friday, touching its firmest level in about two and a half weeks after employment figures for last month were unexpectedly strong in Canada and weaker than forecast in the United States. The Canadian economy created 59,200 jobs last month, nearly triple the 20,000 jobs economists had predicted. Most of the rebound was in part-time work, however, and followed a 39,400 loss in July. The unemployment rate nudged lower to 7.1 percent from 7.2 percent. The data saw the loonie strengthen to as much as C$1.0381, or 96.33 U.S. cents, and ended the session at C$1.0409 versus the U.S. dollar, or 96.07 U.S. cents, firmer than Thursday's close at C$1.0506, or 95.18 U.S. cents. "The headline is outstandingly strong and once again it reinforces the volatility we've been getting in the Canadian job numbers," said Craig Alexander, chief economist at Toronto-Dominion Bank. "It's averaging around 12,000 a month, which is a lackluster pace of employment growth and is consistent with an economy that is growing at a modest pace." At the same time, in the United States, 169,000 jobs were created, short of economists' expectations of 180,000 new jobs. The miss, along with downward revisions to previous months, sowed some uncertainty over when the Federal Reserve will start to pull back its economic stimulus efforts. Many investors expect the Fed will announce a reduction in the pace of its $85 billion a month in bond purchases when the central bank meets in mid-September. Friday's jobs report muddied the waters and helped take the greenback lower against a basket of currencies. Still, economists at a majority of U.S. primary dealers expect the Fed to announce later this month it will cut the size of its asset purchases. Economists did scale back the predicted size of the reduction. "The market by and large continues to see that tapering begins in September," said Jack Spitz, managing director of foreign exchange at National Bank Financial. "The U.S. data was not negative, it was positive, it just wasn't as positive as one would have liked should they have been in the camp that says there is tapering (coming)." The Canadian jobs data did not change expectations the Bank of Canada will keep interest rates on hold at its next policy meeting. A Reuters poll last week showed economists were forecasting the next interest rate hike would take place during the fourth quarter of 2014. "Bottom line, the report is unlikely to alter Bank of Canada policy near term, leaving the Bank of Canada on the sidelines," said Paul Ferley, assistant chief economist at Royal Bank of Canada. "The issue they're dealing with right now is getting a sense after the modest gain in GDP growth in the second quarter of how much of a rebound we're likely to get in Q3." Prices for Canadian government debt rose with the two-year bond up 3 Canadian cents to yield 1.290 percent and the benchmark 10-year bond climbing 31 Canadian cents to yield 2.771 percent.
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c7305cc3be727e6cccb643864888acf1
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https://www.reuters.com/article/markets-canada-dollar-bonds-idCAL2N0JJ21F20131204?edition-redirect=ca
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CANADA FX DEBT-C$ at 3-year low as central bank flags weak inflation
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CANADA FX DEBT-C$ at 3-year low as central bank flags weak inflation
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* C$ at C$1.0678 vs US$, or 93.65 U.S. cents * C$ weakens further after Bank of Canada statement * Bond prices mostly lower across maturity curve By Leah Schnurr TORONTO, Dec 4 (Reuters) - The Canadian dollar weakened to a 3-1/2-year low against the greenback on Wednesday after the Bank of Canada issued a more dovish-than-expected policy statement, highlighting the risks of undesirably weak inflation. The loonie started the North American trading day on a weaker foot and selling picked up momentum after the central bank's statement was released, extending recent losses for the battered currency. The Canadian dollar has fallen in five of its last six sessions, dropping through key support levels as investors have turned bearish. In a statement that showed the central bank is increasingly concerned about possible disinflation, the Bank of Canada said the risks of weak inflation now appear greater than they did six weeks ago. Still, the bank added that the balance of risks remained within the range of possibilities it identified in its last policy announcement in October. "It just reinforces the sentiment that it's unlikely we'll see the Bank of Canada act in terms of moving interest rates for all of 2014," said Gareth Sylvester, director at Klarity FX in San Francisco. Wednesday's statement was the first following a policy shift in October, when the central bank dropped any mention of a rate hike, catching markets off guard. Since that October statement, the loonie has lost more than 3 percent. During the period, it has also been pressured by weak oil prices and the prospect that the U.S. Federal Reserve could begin winding down its economic stimulus sooner rather than later. The Canadian dollar ended the North American session at C$1.0678 to the greenback, or 93.65 U.S. cents, weaker than Tuesday's close of C$1.0649 or 93.91 U.S. cents. The loonie eased as far as C$1.0708, its weakest level since May 2010. While technicals suggest the Canadian dollar could be poised for a correction back to the C$1.05 area, the currency could hit C$1.085 in the months ahead, Sylvester said. "We don't think necessarily the market has moved too far, too soon. It has been an orderly grind higher, so I think that supports the fact the U.S. dollar-Canadian dollar could hold on to these rallies." A Reuters poll released before the Bank of Canada's statement on Wednesday showed analysts see no reprieve for the Canadian currency in the coming year, with the loonie forecast to trade at C$1.08 12 months from now. As was widely expected, the central bank also held its key interest rate at 1 percent, where it has been since 2010. October's policy shift has pushed out market expectations for the next rate hike into 2015. Data earlier in the morning showed Canada unexpectedly posted a trade surplus of C$75 million ($70.1 million) in October, the first in 22 months. The Canadian dollar had little reaction to the data. The two-year bond was unchanged to yield 1.071 percent, while the benchmark 10-year bond fell 41 Canadian cents to yield 2.639 percent.
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https://www.reuters.com/article/markets-canada-dollar-bonds-idCAL2N0LI1TN20140213?edition-redirect=ca
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CANADA FX DEBT-C$ ekes out gain, extending bounce from recent lows
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CANADA FX DEBT-C$ ekes out gain, extending bounce from recent lows
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* Canadian dollar at C$1.0977 or 91.10 U.S. cents * Bond prices higher across the maturity curve By Leah Schnurr TORONTO, Feb 13 (Reuters) - The Canadian dollar firmed modestly against the greenback on Thursday, building on recent momentum that has helped the loonie bounce back from a sharp drop last month that many analysts now say was overdone. One of the few domestic economic reports released this week showed new home prices in Canada rose 0.1 percent in December, as expected. Data south of the border had more of an impact on the Canadian dollar, as an unexpected drop in U.S. retail sales for January pressured the currency earlier in the day before the loonie was able to push higher. After a sharp sell-off in January that took the Canadian dollar to 4-1/2-year lows, the currency has bounced back to recoup about 1 percent since the start of February. "Overall, I think (there is) a little bit more risk-appetite for the loonie," said Rahim Madhavji, president at KnightsbridgeFX.com in Toronto. "People have felt that the U.S. dollar versus the Canadian dollar somewhat peaked a week or two ago and we're seeing the loonie have a little bit of momentum." The Canadian dollar ended the North American session at C$1.0977 to the greenback, or 91.10 U.S. cents, slightly weaker than Wednesday's close of C$1.0997, or 90.93 U.S. cents. The currency has gained in five of its last six sessions. Nonetheless, the fundamentals that drove the loonie lower at the start of the year remain in place, particularly a Bank of Canada that is concerned about the weak inflation environment and is likely to keep rates low for some time. Most analysts expect there is more downside in store for the loonie. "Certainly things have turned slightly more favorable for the Canadian dollar in February, but it doesn't erase it," said Camilla Sutton, chief currency strategist at Scotiabank in Toronto. "The overarching driver of weakness has been the Bank of Canada, in an environment where inflation data is particularly important." The C$1.0967 mark will be an important technical level, as a break through that level would suggest an accelerated downside in the U.S. dollar-Canadian dollar pairing, but a failure to crack it could provide support, said Sutton. Canadian government bond prices were higher across the maturity curve, with the two-year up 3 Canadian cents to yield 1.019 percent and the benchmark 10-year up 23 Canadian cents to yield 2.460 percent.
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2fe2a57b3e4189b96b99c133778fb1b1
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https://www.reuters.com/article/markets-canada-dollar-bonds-idCAL2N0ME18X20140317?edition-redirect=ca
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CANADA FX DEBT-C$ firms as risk aversion fades after Crimea vote
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CANADA FX DEBT-C$ firms as risk aversion fades after Crimea vote
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* Canadian dollar at C$1.1053 or 90.47 U.S. cents * Bond prices lower across the maturity curve By Leah Schnurr TORONTO, March 17 (Reuters) - The Canadian dollar strengthened against the greenback on Monday on market relief that the referendum in Crimea on Sunday passed without major incident, making investors less averse to risk. Crimea formally applied to join Russia on Monday after the result of the referendum, which Ukraine called illegal, was strongly in favor of seceding from Ukraine. The United States and European Union imposed personal sanctions on Russian and Crimean officials involved in the seizure of Crimea from Ukraine. The Canadian dollar had been weaker on Friday as investors looked for safe havens ahead of the vote, fearing a major escalation of geopolitical tension. But the outcome was largely as expected and was already priced into the market, analysts said. "We still don't know how the whole Russia-Ukraine situation will play out ... but I think the fact that there's been no imminent risk, that has allowed everyone to take a sigh of relief and just focus back on the data and the markets," said Rahim Madhavji, president at KnightsbridgeFX.com in Toronto. The Canadian dollar ended the North American session at C$1.1053 to the greenback, or 90.47 U.S. cents, stronger than Friday's close of C$1.1095, or 90.13 U.S. cents. Strength in the currency was limited by uncertainty over developments in China, where the central bank loosened its grip on the yuan over the weekend by doubling the daily trading range for the currency. China has promised it will allow market forces to play a greater role in the economy and its markets. The move follows recent concerns about the implications of slowing growth in China. "To some degree that reflects their weakening growth prospects and hence is weighing on commodity prices, which also act to soften the Canadian dollar," said Don Mikolich, executive director of foreign exchange sales at CIBC World Markets in Toronto. The loonie is frequently sensitive to developments in China, which is the world's second-largest economy and a major consumer of natural resources. Among the day's economic reports, data showed foreigners returned to buying Canadian securities in January, while a separate report showed sales of existing homes in Canada edged higher in February. Neither release had much impact on the loonie. Investors were also looking ahead to a speech by Bank of Canada Governor Stephen Poloz on Tuesday, as well as Janet Yellen's first meeting as chair of the U.S. Federal Reserve, with a policy statement and news conference on Wednesday. The Bank of Canada shifted policy gears late last year when it dropped any mention of interest rate hikes, and that more dovish policy tilt has been a major driver for the Canadian dollar in recent months. In its most recent policy announcement, the central bank continued to express concerns about weak inflation. "While I think the (Poloz) comments are important, I really don't think it's going to change anything because they've basically said they're going to wait for the data to play out," Madhavji said. While the Fed is expected to reduce its monthly bond-buying stimulus by another $10 billion, policymakers could decide to scrap their threshold of a 6.5 percent unemployment rate for considering a rise in interest rates. Canadian government bond prices were lower across the maturity curve, with the two-year off 4 Canadian cents to yield 1.031 percent and the benchmark 10-year down 34 Canadian cents to yield 2.433 percent.
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https://www.reuters.com/article/markets-canada-dollar-bonds-idCAL2N0MZ19X20140407?edition-redirect=ca
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CANADA FX DEBT-C$ consolidates after last week's gains
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CANADA FX DEBT-C$ consolidates after last week's gains
By 0 Min Read
* Canadian dollar at C$1.0969 or 91.17 U.S. cents * Bond prices higher across the maturity curve (Adds details, quote, updates prices) By Leah Schnurr TORONTO, April 7 (Reuters) - The Canadian dollar firmed modestly against the greenback on Monday with gains limited by investors consolidating their positions after the currency's runup late last week following a robust domestic jobs report. The backdrop on Monday was the provincial election in Quebec, with polls closing at 8 p.m. EDT (2400 GMT). But with the governing separatist party behind in public opinion surveys, the loonie was not expected to see much impact. The Bank of Canada released its first-quarter survey of business managers in what was set to be an otherwise light week for domestic economic data. The survey showed Canadian businesses widely expect their input costs to rise as a result of the weaker loonie and painted a relatively upbeat view of economic growth over the next 12 months. The survey "seemed a little more upbeat, people responding somewhat to the weaker currency as a bit of a positive on the export side," said Don Mikolich, executive director of foreign exchange sales at CIBC World Markets in Toronto. The loonie rose strongly at the end of last week after data showed the domestic economy added twice as many jobs as expected in March. On Monday, the Canadian dollar ended the North American session at C$1.0969 to the greenback, or 91.17 U.S. cents, a bit firmer than Friday's close of C$1.0981, or 91.07 U.S. cents. Last week's data had pushed the loonie through C$1.10, piercing the psychologically important level for the first time in a month. That level will likely continue to be a meaningful pivot for the currency, said Scott Smith, senior market analyst at Cambridge Mercantile Group in Calgary. "This level is going to be pretty important resistance on the way back up if the U.S. dollar starts to gain more strength here," he said. In Quebec, the latest opinion polls showed the Liberals ahead of the separatist Parti Quebecois, tamping down concerns over a possible referendum on independence from Canada. In the past, Quebec has had two referendums on whether to separate, both of which failed. The separatists lost the last one, in 1995, but by just over one percentage point. "Compared to the other two situations where Quebec had their referendum and we saw the Canadian dollar weaken off quite significantly, I don't think there's a big risk for this election," Smith said. "Markets obviously don't like indecision, and they don't like the possibility of potentially having a referendum, but that's been played down over the last few weeks." Canadian government bond prices were higher across the maturity curve, with the two-year up 1 Canadian cent to yield 1.082 percent, and the benchmark 10-year up 27 Canadian cents to yield 2.462 percent. (Editing by Peter Galloway)
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CANADA FX DEBT-C$ hits one-weak low after Bank of Canada comments
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CANADA FX DEBT-C$ hits one-weak low after Bank of Canada comments
By 0 Min Read
* Canadian dollar at C$1.1018 or 90.76 U.S. cents * Bond prices mostly lower across the maturity curve * Bank of Canada holds interest rates steady * Central bank notes risk of weak inflation (Adds strategist's comments, updates prices to close) By Alastair Sharp TORONTO, April 16 (Reuters) - The Canadian dollar ended at its weakest level versus its U.S. counterpart in more than a week on Wednesday after the Bank of Canada extended its 3-1/2 year freeze on borrowing costs and noted the risk of weak inflation. The central bank's decision to keep its benchmark interest rate at 1 percent was expected, but the Canadian dollar reacted bearishly to the tone of its statement, even as bank Governor Stephen Poloz held firm on the bank's neutral stance. "For anyone that was looking for them to be a little more hawkish, they are barking up the wrong tree completely," said Shaun Osborne, chief currency strategist at TD Securities. Following the release of some stronger economic data recently, market players had been watching for any sign Poloz would change his tone on inflation and be less dovish than he was in the bank's March and January rate statements. Osborne said that with the central bank signaling it will stand pat on rates, while studying upcoming economic data, the currency could drift weaker to near C$1.12 to the greenback in coming weeks. "For me, there is still a lot to suggest that the Canadian dollar is probably going to be somewhat fundamentally challenged this year," he said. "Growth is not picking up in the way we'd normally expect it to, job creation in Canada seems to be tracking lower versus somewhat steady growth in the U.S., export sector is not firing on all cylinders." The Canadian dollar, which underperformed most major currencies, ended the session at C$1.1018 versus the greenback, or 90.76 U.S. cents, weaker than Tuesday's close of C$1.0977, or 91.10 U.S. cents. Earlier it fell as low as C$1.1034, or 90.63 U.S. cents, its weakest level since April 4. The Bank of Canada also said in its quarterly Monetary Policy Report that it expects a faster-than-anticipated rise in Canada's headline inflation, but suggested it would ignore the trend, attributing it to temporary price increases in volatile items and a weaker Canadian dollar. "I think what you're seeing is the bank's plans and guidance at work," said Brad Schruder, a director of foreign exchange at BMO Capital Markets, adding that he did not see any surprises in Wednesday's central bank statements. "I think the momentum that had been previously supporting USD/CAD bulls has actually left them. This pop is actually a good opportunity to get long Canada." Schruder said he expects the pair to straddle the 91 U.S. cent level over the next quarter, and perhaps longer. Canadian government bond prices were mostly lower across the maturity curve, with the two-year off half a Canadian cent to yield 1.048 percent and the benchmark 10-year off 2 Canadian cents to yield 2.390 percent. The 20-year 30-year issues bucked the trend, rising 26 and 34 cents respectively. (Additional reporting by Solarina Ho; Editing by Peter Galloway)
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CANADA FX DEBT-C$ firms after inflation rises more than expected
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CANADA FX DEBT-C$ firms after inflation rises more than expected
By 0 Min Read
* Canadian dollar at C$1.0998 or 90.93 U.S. cents * Bond prices mostly lower across the maturity curve By Leah Schnurr TORONTO, April 17 (Reuters) - The Canadian dollar firmed against the greenback on Thursday after data showed domestic annual inflation was stronger than expected in March, boosted by higher energy costs. Still, the loonie stuck to a tight range and trading looked as if it could be muted heading into the long weekend. Financial markets in Canada are closed on Friday for the Good Friday holiday. The annual inflation rate rose to 1.5 percent in March, beating expectations for 1.4 percent rise, while the less volatile core measure edged up to 1.3 percent, as expected. "A little bit stronger than expected could put a little bit more upward pressure on interest rates and maybe provide a little bit of support for the Canadian dollar," said Paul Ferley, assistant chief economist at Royal Bank Of Canada in Toronto. The Canadian dollar was at C$1.0998 to the greenback, 90.93 U.S. cents, stronger than Wednesday's close of C$1.1018, or 90.76 U.S. cents. The loonie hit a session high shortly after the data was released. The inflation report came a day after the Bank of Canada flagged its concerns about the weak inflation environment, even as it forecast inflation will pick up this year. The bank kept its benchmark interest unchanged at 1.0 percent as it has done since September 2010. "It is a bit of a precarious situation for the bank to be in because they do want to stay sidelined for an extended period of time," said Mazen Issa, senior Canada macro strategist at TD Securities in Toronto. "The acceleration in inflation is occurring, we definitely do think that inflation troughed in the last quarter of last year, so they're going to have to tread a little bit carefully now in terms of their communication." Canadian government bond prices were mostly lower across the maturity curve, with the two-year down 1 Canadian cent to yield 1.056 percent and the benchmark 10-year was also down 1 Canadian cent to yield 2.391 percent. (Additional reporting by Solarina Ho; editing by Peter Galloway)
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CANADA FX DEBT-C$ drifts higher as greenback slides
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CANADA FX DEBT-C$ drifts higher as greenback slides
By 0 Min Read
* Canadian dollar ends at C$1.0841 or 92.11 U.S. cents * Bond prices mixed across the maturity curve By Cameron French TORONTO, June 16 (Reuters) - The Canadian dollar ended higher versus the U.S. currency on Monday as U.S. dollar investors trimmed positions ahead of clues from the Federal Reserve on the timing of an interest rate increase. Oil futures rose as advances by Sunni insurgents in Iraq fueled concerns over a potential disruption to oil exports, but seemed to have no direct impact on the often resource-fuelled Canadian currency. "You're seeing more U.S. dollar weakness than anything else across the board, and the (Canadian dollar) is catching a little bit of a bid there in sympathy," said Brad Schruder, director of foreign exchange sales at BMO Capital Markets. The Canadian dollar ended the North American session at C$1.0841 to the U.S. dollar, or 92.24 U.S. cents, up from Friday's close of C$1.0856, or 92.11 U.S. cents. While U.S. dollar investors will be watching Fed policymakers, who will meet on Tuesday and Wednesday, for signals that U.S. monetary policy could tighten, there are few signs of any shift in Canadian monetary policy any time soon. Canadian Finance Minister Joe Oliver said on Monday that private sector economists are not too concerned about low inflation, and said he did not see any bubble in Canada's housing market. Schruder said he believes the currency is searching for a new equilibrium versus the U.S. currency, and should eventually push past C$1.08, or 92.59 U.S. cents. Canadian government bond prices were mixed across the maturity curve. The two-year was down 11 Canadian cents to yield 1.099 percent and the benchmark 10-year bond was up 20 Canadian cents to yield 2.291 percent. (Reporting by Cameron French; Editing by David Gregorio)
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CANADA FX DEBT-C$ tips higher as eventful week starts
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CANADA FX DEBT-C$ tips higher as eventful week starts
By Reuters Staff0 Min Read
* C$ tilts higher to 98.06 U.S cents
* Central banks, data, U.S. elections jockey for attention
* Ottawa to rule on BHP's bid for Potash Corp this week
TORONTO, Nov 1 (Reuters) - The Canadian dollar edged up against a generally softer U.S. currency on Monday, while government bonds were little changed, as market players expected range trading ahead of an eventful week, starring the U.S. Federal Reserve's expected monetary easing.
No domestic economic news is scheduled on Monday. Much of the global market's focus remains on the Fed's decision on the size and composition of asset purchases expected by the central bank, which is set to meet Nov. 2-3.
Policy decisions are also due from the Europen Central Bank as well as the central banks of Australia, Japan, and England. The week is also chock full of data, including the Canadian and U.S. readings of the labor market for October on Friday, while U.S. elections on Tuesday are also high on investors' radar. [ID:nLDE6A00QV]
"There's too much event risk. Prudent traders are going to stay on the sidelines," said Michael O'Neill, managing director at Knightsbridge Foreign Exchange. He expected the range to be between C$1.0140-C$1.0280.
The currency traded in a relatively narrow range, between C$1.0155-C$1.0222, so far in the session but managed to touch a two-week high before backing off.
Investors will also be keeping an eye on developments in Anglo-Australian miner BHP Billiton's push to buy Potash Corp., a fertilizer giant and one of Canada's biggest companies.
Ottawa is due to decide by Nov. 3 whether BHP's bid for Potash Corp will bring a net benefit to Canada, which would allow it to clear the bid or approve it with conditions. [ID:nN22340110]
The deal, currently worth $39 billion, had sent the Canadian dollar soaring when the deal was first announced in August. If successful, the currency is likely to get another boost as the international buyer would need the Canadian currency to purchase Potash shares from local investors.
At 8:02 a.m. (1202 GMT), the Canadian dollar was at C$1.0198 to the U.S. dollar, or 98.06 U.S cents, up slightly from C$1.0202 to the U.S. dollar, or 98.02 U.S. cents.
The two-year bond CA2YT=RR was off 1 Canadian cent to yield 1.412 percent, while the 10-year bond CA0YT=RR added 2 Canadian cents to yield 2.802 percent.
(Reporting by Ka Yan Ng, Editing by Chizu Nomiyama)
Our Standards: The Thomson Reuters Trust Principles.
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CANADA FX DEBT-C$ soars on rebounding risk sentiment
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CANADA FX DEBT-C$ soars on rebounding risk sentiment
By Jennifer Kwan0 Min Read
* C$ touches high of 95.37 U.S. cents
* Bonds fall, risk appetite up on strong economic data
* Canada C$1.4 bln bond due 2041 yields 3.489 pct (Updates figures, adds bond auction details)
TORONTO, Sept 1 (Reuters) - Canada's dollar soared more than a penny against the U.S. currency on Wednesday and bond prices sank as risk appetite was revived on strong U.S. and overseas data that eased recent concerns about the recovery.
Major U.S. stock indexes rose more than 2 percent after a closely watched report showed U.S. manufacturing grew faster than forecast and chalked up a 13th straight month of expansion. [ID:nN01115840]
That followed data that showed China's manufacturing sector rebounded in August after slowing for several months, while Australia's economy grew at the fastest pace in three years last quarter.
The reports offered some good news for investors to hang on after a recent string of weak U.S. and Canadian data. [ID:nTOE68001O] [ID:nSGE67U0L3]
The currency's rise is "basically a reflection of better risk appetite" following the U.S. and overseas reports, which sent global equities higher, said Mark Chandler, head of Canadian fixed income and currency strategy at RBC Capital Markets.
"Both the Australian data and the China data gave a little bit of relief. We've had some pressure on the global growth story," Chandler added.
The Canadian currency CAD=D4 rose as high as C$1.0485 to the U.S. dollar, or 95.37 U.S. cents, up sharply from C$1.0665 to the U.S. dollar, or 93.76 U.S. cents, at Tuesday's close. At 12:49 p.m. (1649 GMT), it was at C$1.0507 to the U.S. dollar, or 95.17 U.S. cents.
The Canadian dollar starts the month on a firm note after falling 3.6 percent in August.
No more domestic economic reports are due this week, leaving market players to consider how external data will influence the Bank of Canada heading into next week's rate decision. The bank has suggested further rate hikes will be weighed against both domestic and global developments.
The next key indicator will be Friday's U.S. payrolls report.
The bank's Sept. 8 rate decision is one of the closest calls in some time, with market pricing, as measured by a Reuters calculation of yields on overnight index swaps, roughly split between a quarter-point rate hike or a no change in interest rates BOCWATCH.
However, most of Canada's primary securities dealers, surveyed by Reuters on Tuesday, still forecast the central bank will raise its key rate by a quarter point to 1.0 percent. But they also forecast the rate increase will be the last of 2010 because of the slowing economy. [ID:nN31267387]
BONDS DROP
Canada's two-year bond CA2YT=RR fell 12 Canadian cents to yield 1.272 percent, while the 10-year issue CA10YT=RR dropped 73 Canadian cents to yield 2.860 percent.
Elsewhere, the Bank of Canada said its C$1.4 billion auction of 4.0 percent government of Canada bonds due June 1, 2041 produced an average yield of 3.489 percent. [ID:TOR007782]
"It was relatively well received," said Chandler.
"It helped that yields backed up so much prior to the auction, but in general Canada has underperformed relative to the U.S. over the last little while, so there were people that were looking for opportunities to go long Canadian assets." (Additional reporting by by Ka Yan Ng; editing by Rob Wilson)
Our Standards: The Thomson Reuters Trust Principles.
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CANADA FX DEBT-C$ returns above parity, Macklem speech eyed
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CANADA FX DEBT-C$ returns above parity, Macklem speech eyed
By Reuters Staff0 Min Read
* C$ rises above parity to $1.0026
* Bonds softer across the curve as investors eye data
* BoC's Tiff Macklem speaks in Alberta on productivity
TORONTO, Feb 1 (Reuters) - Canada's dollar returned to above parity against a broadly softer U.S. dollar on Tuesday, though gains were held in check by a softer price of oil.
The currency CAD=D4 skidded nearly a penny in the previous session, hitting its lowest level this year before paring losses, after Finance Minister Jim Flaherty's cautious remarks on employment prompted investors to price in a weak January jobs figure on Friday.[ID:nN31250834] [ID:nN31215923]
By Tuesday morning, the U.S. dollar had tumbled across the board, hitting a 2 1/2-month trough against a currency basket as investors highlighted expectations the U.S. Federal Reserve will lag far behind other central banks -- notably the European Central Bank and the Bank of England -- in raising interest rates. [FRX/]
The price of oil, often a driver of Canada's currency, eased slightly as the market assessed the risk of Egypt's social unrest spreading to neighbouring OPEC members. [O/R]
At 8:10 a.m. (1310 GMT), the Canadian currency was at C$0.9974 to the U.S. dollar, or $1.0026, up from C$1.0015 to the U.S. dollar, or 99.85 U.S. cents, when it had finished below parity for a second straight session.
"It's a very weak day in general for the U.S. dollar, so on these kind of days, Canada's underperforming on the crosses but still able to eke out some gains against the U.S. dollar," said Sacha Tihanyi, currency strategist at Scotia Capital.
"As we seen in the past month, it's been a restrained trading range for the Canadian dollar in general."
Analysts were eyeing a daily range of C$0.9960-C$1.10 to the U.S. dollar.
No Canadian data is expected until the end of the week when Statistics Canada releases the employment report for January, and, on average, analysts expect a gain of 15,000 jobs in the month, according to Reuters estimates. The jobless rate is expected to remain steady at 7.6 percent. [ID:nN28144465]
But the spotlight will be on Bank of Canada Senior Deputy Governor Tiff Macklem, who is speaking in Alberta on Tuesday and Wednesday about Canada's productivity.
Macklem may repeat Governor Mark Carney's recent warnings that a persistent strength in the Canadian dollar could reinforce drag on trade, Tihanyi said. [ID:nN27191953]
Prices for Canadian bonds were lower across the curve, tracking their U.S. counterparts, as investors shifted their focus from Middle East turmoil and global stocks were bid on improved economic data and corporate results. [MKTS/GLOB]
The U.S. Institute for Supply Management's (ISM) January report on manufacturing activity, due at 1500 GMT, is expected the main index at 58.0, reflecting expansion. ECONUS
The two-year bond CA2YT=RR slipped 4 Canadian cents to yield 1.691 percent, while the 10-year bond CA10YT=RR was down 30 Canadian cents to yield 3.312 percent.
(Reporting by Ka Yan Ng, Editing by Chizu Nomiyama)
Our Standards: The Thomson Reuters Trust Principles.
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CANADA FX DEBT-Canada dollar inches up on firming oil
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CANADA FX DEBT-Canada dollar inches up on firming oil
By Reuters Staff0 Min Read
* C$ rises slightly to 94.19 U.S. cents
* Bonds outperform U.S. Treasuries
TORONTO, Feb 2 (Reuters) - Canada's currency climbed against the U.S. dollar on Tuesday as influential commodity prices firmed, extending gains from the previous session.
On Monday, the Canadian dollar appreciated for the first time in 10 sessions, mirroring gains in commodity and equity markets, and the same factors were driving the currency on Tuesday.
At 8:50 a.m. (1350 GMT), the Canadian dollar was at C$1.0617 to the U.S. dollar, or 94.19 U.S. cents, up from C$1.0624 to the U.S. dollar, or 94.13 U.S. cents, at Monday's close. Earlier in the session, the currency hit 94.65 U.S. cents before paring gains.
"We see commodities higher and oil back above $75 and generally risk aversion has moved a little bit to the background," said Camilla Sutton, currency strategist at Scotia Capital.
The Canadian dollar was also a slightly favored commodity-linked currency on Tuesday after the Reserve Bank of Australia's central bank kept interest rates on hold in a surprise move, sending the Australian dollar down more than 1 percent against the U.S. dollar. [ID:nRBA]
The move has also prompted market watchers to eye the Australia/Canada dollar pair, which is testing its 200-day moving average around $0.9285.
Short-term influence may come from the U.S. pending home sales for December at 10 a.m. (1500 GMT). Economists surveyed by Reuters expect a 1.0 percent rise compared with a 16.0 percent fall in the previous month.
The data calendar for Canada is bare until Thursday when a report on building permits for December and an index of purchasing activity for January are due. But the main focus will be on Friday when market players look for further evidence of an economic recovery in the Canadian and U.S. jobs data. [ID:nN01230910] ECONCA
Canadian bonds were higher across the curve and outperforming their U.S. counterparts. The two-year bond CA2YT=RR was up 38 Canadian cents at C$100.38 to yield 1.313 percent, while the 10-year bond CA10YT=RR rose 17 Canadian cents to C$103.09 to yield 3.361 percent. (Reporting by Ka Yan Ng; Editing by Theodore d'Afflisio)
Our Standards: The Thomson Reuters Trust Principles.
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CANADA FX DEBT-C$ backs off session high after US jobs data
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CANADA FX DEBT-C$ backs off session high after US jobs data
By Reuters Staff0 Min Read
* C$ steadies after U.S. jobs data at $1.0283
* Bonds outperform U.S. Treasuries (Adds details)
TORONTO, March 4 (Reuters) - The Canadian dollar CAD=D4 hit a session high against the U.S. dollar on Friday, then pared gains to trade steady after data showed the U.S. economy created more jobs in February.
The currency hit a session high at C$0.9708 to the U.S. dollar, or $1.0301, following a surge in U.S. employment last month, which suggested the economic recovery has gathered speed.
By 9:15 a.m. (1415 GMT), the Canadian dollar had steadied to around the previous session's close. It was at C$0.9725 to the U.S. dollar, or $1.0283, down slightly from Thursday's North American finish of C$0.9722 to the U.S. dollar, or $1.0286.
"It spiked on the news and came right back, not surprisingly," said Benjamin Reitzes, economist at BMO Capital Markets.
"The report is basically good news, but more or less as expected. Maybe seeing a decent number for a change gave a little boost of optimism just for a second."
Nonfarm payrolls in the United States increased 192,000, above market expectations for 185,000 jobs, and data for December and January was revised higher. The unemployment rate dipped to its lowest since April 2009 to 8.9 percent from 9 percent. [ID:nOAT004757]
Reitzes said the data was in line with his expectations, although the drop in the unemployment rate was unlikely to be sustainable for the next few months.
While momentum is gathering in U.S. jobs, economists believe the U.S. Federal Reserve will want to see payroll gains in excess of 200,000 for at least six to nine months and a significant decline in unemployment before starting to withdraw its massive monetary support from the economy.
Government bond prices were mildly firmer across the curve, and outperformed U.S. Treasuries, following the U.S. jobs data.
The two-year bond CA2YT=RR was up 3 Canadian cents to yield of 1.863 percent, while the 10-year bond CA10YT=RR added 14 Canadian cents to yield 3.379 percent. (Reporting by Solarina Ho and Ka Yan Ng, Editing by Chizu Nomiyama)
Our Standards: The Thomson Reuters Trust Principles.
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https://www.reuters.com/article/markets-canada-dollar-bonds-idCAN0517423020100505?edition-redirect=ca
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CANADA FX DEBT-C$ falls to near 6-week low on Greece worries
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CANADA FX DEBT-C$ falls to near 6-week low on Greece worries
By Reuters Staff0 Min Read
* Low of C$1.0285 to the US$, or 97.23 U.S. cents,
* Oil price drops below $82 a barrel
* Bonds flat to higher, eye U.S. Treasuries
TORONTO, May 5 (Reuters) - Canada's dollar dropped against the U.S. currency on Tuesday to touch its lowest level in nearly six weeks as investors worried that Greece's debt crisis would spread to other euro zone countries.
The Canadian currency sank to a low of C$1.0285 to the U.S. dollar, or 97.23 U.S. cents, its weakest level since March 26, as world stocks fell to eight-week lows and the euro dropped to its weakest level in a year as investors remained worried about the effectiveness of Greece's aid package. [MKTS/GLOB] [.N]
German Chancellor Angela Merkel and the head of the IMF warned of financial contagion on Wednesday unless a euro zone debt crisis is stopped in Greece. [ID:nSGE644093]
"It's really not a made-in-Canada driver," Jack Spitz, managing director of foreign exchange at National Bank Financial, said of the currency's weakness.
"The Canadian dollar is taking its cue from the broader risk appetite, whether it's on or off. For the last number of days it's been off due to events that are emanating out of Europe."
At 7:45 a.m. (1145 GMT), the Canadian dollar CAD=D4 was at C$1.0281 to the U.S. dollar, or 97.27 U.S. cents, down from Tuesday's finish at C$1.0250 to the U.S. dollar, or 97.56 U.S. cents.
Concern about the fiscal health of euro zone countries drove investors to the safety of the greenback, putting downward pressure on oil and metals prices. [O/R] [GOL/]
Oil prices dropped below $82 a barrel, while base metals were also weaker.
"With the euro lower and the risk currencies lower as well, the Canadian dollar is trending toward the 90-day moving average at C$1.0314," said Spitz, noting the next key technical levels he's watching for are between C$1.0304 and C$1.0324.
Canadian bond prices were flat to higher across the curve, following U.S. Treasuries where yields touched their lowest in almost three months on Wednesday on Greek debt concerns. [US/]
The two-year Canadian government bond CA2YT=RR rose 2 Canadian cents to C$99.57 to yield 1.740 percent, while the 10-year bond CA10YT=RR gained 7 Canadian cents to C$99.60 to yield 3.548 percent. (Reporting by Jennifer Kwan; Editing by Theodore d'Afflisio)
Our Standards: The Thomson Reuters Trust Principles.
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CANADA FX DEBT-C$ firms back above par after U.S. ADP report
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CANADA FX DEBT-C$ firms back above par after U.S. ADP report
By 0 Min Read
* C$ rises to $1.0046 U.S. cents
* U.S. ADP report shows better-than-expected job gains
* Bonds prices fall across curve
(Recasts after ADP jobs data)
By Claire Sibonney
TORONTO, Jan 5 (Reuters) - The Canadian dollar climbed back above parity against the greenback on Wednesday after the U.S. ADP national employment report showed a much better than expected gain in private sector jobs for December.
Following the data, the currency CAD=D4 touched a session high of C$0.9954 to the U.S. dollar, or $1.0046, up from about C$1.0011, or 99.89 U.S. cents just before the release.
The Canadian dollar had been lagging for a second straight day on the back of dissipating risk appetite in commodity and equity markets.
"We're in a scenario now where any fundamental U.S. number that is positive is actually perceived to be more positive for Canada," said Firas Askari, head of foreign exchange trading at BMO Capital Markets, noting that the Canadian dollar was outperforming against other major currencies.
U.S. private employers added 297,000 jobs in December, according to the ADP Employer Services report, nearly triple forecasts. [ID:nN05266445]
"The perception is that the headwinds in the Canadian economy are not really domestic but primarily U.S.," Askari said.
"This is potentially a beginning of a trend of a pickup in employment growth, which leads to housing and everything else, which leads to us exporting more of our great commodities. That's the logic."
At 9:04 a.m. (1404 GMT), the Canadian dollar CAD=D4 stood at C$0.9957 to the U.S. dollar, or $1.0043 U.S. cents, up from Tuesday's finish at C$0.9985 to the U.S. dollar, or $1.0015.
Askari said the next support level for the U.S. dollar is the Monday low of C$0.9889.
Official monthly employment reports on Friday are next in focus, with job growth expected in both the United States and Canada. U.S. Federal Reserve Chairman Ben Bernanke's congressional testimony on Friday will also be closely followed. [ID:nN31145126] ECON
Canadian government bond prices retreated after the data, tracking U.S. Treasuries lower. The two-year bond CA2YT=RR was down 5 Canadian cents to yield 1.747 percent, while the 10-year bond CA10YT=RR shed 75 Canadian cents to yield 3.226 percent. (Reporting by Jeffrey Hodgson)
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RPT-CANADA FX DEBT-C$ lower with oil price decline, growth fears
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RPT-CANADA FX DEBT-C$ lower with oil price decline, growth fears
By Reuters Staff0 Min Read
* C$ lower vs US$ at C$0.9792, or $1.0212
* Canada April building permits plunge 21.1 pct
* Bond prices mixed (Repeats with links to bond, currency prices)
TORONTO, June 6 (Reuters) - Canada's dollar weakened against the U.S. currency on Monday as oil prices dropped and concerns lingered about the strength of the U.S. economy, which absorbs the majority of Canadian exports.
The price of U.S. crude oil was down more than 1 percent at $99.05 a barrel on concerns that high prices were eroding demand. [O/R]
Canada is the top oil exporter to the United States.
"There are concerns that the U.S. economy just can't maintain momentum at all," said David Watt, senior currency strategist at RBC Capital Markets.
A report on Friday showed U.S. non-farm payrolls rose far less than expected in May and jobless rate rose to 9.1 percent.
Adding to concerns about the outlook for North American growth, a report on Monday showed that the value of Canadian building permits plunged 21.1 percent in April, compared to an expected 6.0 percent decline. [ID:nN06254333]
At 9:02 a.m., the Canadian dollar CAD=D4 was at C$0.9792 to the U.S. dollar, or $1.0212, down from Friday's North American session close at C$0.9783, or $1.0222.
Canada's two-year bond CA2YT=RR was flat, with a yield of 1.433 percent, while the 10-year bond CA10YT=RR was down 3 Canadian cents to yield 2.993 percent. The 30 year bond CA30YT=RR was down 47 Canadian cents with a yield of 3.499. (Reporting by John McCrank; Editing by Jeffrey Hodgson)
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CANADA FX DEBT-C$ relinquishes early gain, ends lower
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CANADA FX DEBT-C$ relinquishes early gain, ends lower
By Frank Pingue0 Min Read
* C$ retreats from C$1.0687 session high
* Oil prices weigh on Canadian dollar
* Bond prices higher ahead of jobs data (Recasts)
TORONTO, Aug 6 (Reuters) - Canada's currency closed lower versus the greenback on Thursday as risk averse traders hedged positions ahead of domestic jobs data on Friday that is expected to show unemployment at an 11-year high.
Canada's currency was also dragged down by oil prices that ended lower after a back-and-forth session that at one point had prices at their highest level since late June. [ID:nSP359441]
"Oil (prices) came back towards the end of the day but the Canadian dollar failed to react to the last recovery in the oil price," said Matthew Strauss, senior currency strategist at RBC Capital Markets.
"So risk aversion ... and position-squaring ahead of tomorrow's data, and that's the reason why the Canadian dollar didn't really react to the last move in the oil price."
Markets expect Statistics Canada to report net job losses of 17,500 for July, and an unemployment rate of 8.8 percent. The data is due at 7:00 a.m. (1100 GMT).
The Canadian dollar closed at C$1.0767 to the U.S. dollar, or 92.88 U.S. cents, down from C$1.0701 to the U.S. dollar, or 93.45 U.S. cents, at Wednesday's close.
The lower close erased gains made early in the session when the latest North American economic data supported a view that the worst of the world recession is over.
While not typically a market mover, the Canadian dollar did rally as high as C$1.0687 to the U.S. dollar, or 93.57 U.S. cents, after data showed Canadian builders unexpectedly took out more permits in June than in May [ID:nN06293340]
The report came at the same time as U.S. data that showed the number of people filing initial claims for jobless benefits fell in the latest week. [ID:nN05350423].
And shortly after that were upbeat comments from European Central Bank President Jean-Claude Trichet, who said he sees a gradual recovery in 2010. [ID:nFAE005213]
BOND PRICES EDGE HIGHER
Canadian bond prices ended higher alongside the bigger U.S. Treasury market, snapping two straight sessions of declines, as dealers were cautious ahead of Friday's jobs figures.
The two-year Canadian bond edged up 3 Canadian cents to C$99.08 to yield 1.458 percent, while the 10-year bond gained 33 Canadian cents to C$101.63 to yield 3.551 percent.
The 30-year bond rose 80 Canadian cents to C$116.25 to yield 4.023 percent. In the United States, the 30-year Treasury yielded 4.546 percent.
Canadian bonds outperformed U.S. Treasuries across the curve. The Canadian 30-year bond was about 52.3 basis points below the U.S. 30-year yield, compared with about 49.5 basis points below on Wednesday. (Editing by Peter Galloway)
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CANADA FX DEBT-C$ rallies after record Canada jobs data
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CANADA FX DEBT-C$ rallies after record Canada jobs data
By 0 Min Read
* C$ touches high of C$1.0338, or 96.73 U.S. cents
* Canada posts historic gain in jobs in April
* Euro zone debt concerns keep C$ gains in check
* Rate rise expectations push bonds lower
By Jennifer Kwan
TORONTO, May 7 (Reuters) - Canada's dollar shot up one U.S. cent on Friday after a stronger-than-expected jobs report showed a record number of Canadians returned to work in April, adding pressure on the Bank of Canada to raise rates soon.
The currency CAD=D4 firmed to a session high of C$1.0338 to the U.S. dollar, or 96.73 U.S. cents, from about C$1.0448, or 95.71 U.S. cents just before the data's release.
Statistics Canada on Friday said the economy added 108,700 jobs in the month, the highest since Statscan began tracking the data in 1976 and exceeding even the most upbeat estimate in a Reuters poll which yielded a median forecast of 25,000 new jobs. [ID:nN0793308]
"In more normal times this would be a huge lift for the Canadian dollar. We've seen a bit of a lift for the Canadian dollar, but obviously we're not normal times," said Craig Wright, chief economist at Royal Bank of Canada.
"People are still looking to developments in Europe to take direction and it's the old risk-on and risk-off trade. If people become more comfortable with risk the environment for another run at parity for Canada is there."
At 7:39 a.m. (1139 GMT), the Canadian currency was at C$1.0380 to the U.S. dollar, or 96.34 U.S. cents, higher than its close on Thursday of C$1.0523 to the U.S. dollar, or 95.03 U.S. cents.
Yields on overnight index swaps, which trade based on expectations for the central bank's key policy rate, jumped on Friday, showing the market saw tightening as more likely than before the data. BOCWATCH.
Last month, the Bank of Canada took a first step toward tightening monetary policy by removing a commitment to keep rates at a rock-bottom 0.25 percent until the end of June. Most market players now expect it to raise rates to 0.50 percent on June 1.
Supporting the currency's move higher on Friday morning was firmer oil prices, which edged toward $78 a barrel, and U.S. stock index futures, which signaled a rebound after a steep fall in the previous session. [O/R] [.N]
Market watchers will now eye April's U.S. non-farm payrolls data, with economists polled by Reuters expecting that employers added 200,000 jobs last month after a 162,000 increase in March. The data is due at 8:30 a.m. (1230 GMT).
The currency's move higher comes a day after Canada's dollar plunged on Thursday, hitting a near 3-month low against the greenback in its steepest intraday drop since the market crash of 2008, on fears Greece's debt crisis may spread to other euro zone countries and threaten the economic recovery.
BOND PRICES LOWER
Canadian government bond prices slumped across the curve, as the strong domestic jobs data hinted at the higher rate environment.
The two-year government bond CA2YT=RR fell 21 Canadian cents to C$99.23 to yield 1.883 percent, while the 10-year bond CA10YT=RR dropped 38 Canadian cents to C$99.77 to yield 3.528 percent. (Reporting by Jennifer Kwan; Editing by Jeffrey Hodgson& Theodore d'Afflisio)
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CANADA FX DEBT-C$ turns lower as greenback shows strength
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CANADA FX DEBT-C$ turns lower as greenback shows strength
By Jennifer Kwan0 Min Read
* Drops to 96.63 US cents after hitting 2-1/2 month high
* Bonds fall across curve (Recasts, adds quote)
TORONTO, Jan 7 (Reuters) - The Canadian dollar was lower against the U.S. dollar at midday on Thursday, pressured by a stronger greenback and equity markets that stumbled after recent gains.
The U.S. dollar also firmed against the euro and yen, underpinned by weak German and euro zone economic data as well as by comments by Japan's new finance minister that he wanted a weaker yen. [FRX/]
"Broad-based U.S. dollar strength is weighing on currencies globally," said Matthew Strauss, senior currency strategist at RBC Capital Markets.
At 12:07 p.m. (1707 GMT), the Canadian dollar was at C$1.0349 to the U.S. dollar, or 96.63 U.S. cents, down from Wednesday's finish of C$1.0325 to the U.S. dollar, or 96.85 U.S. cents.
An oil price that sagged below $83 a barrel and softer gold prices [O/R] [GOL/] also weighed on the commodity-linked Canadian dollar.
Weakness on global equity markets, which are typically a gauge of risk appetite, ahead of key U.S. jobs data due on Friday was also a factor in the currency's drop. [MKTS/GLOB].
"There was a slight risk aversion bias in the market," Strauss said.
"Ahead of such important data, a lot of longer-term investors would rather wait for the data before adding to their views or taking profit," he added.
Early in the day, the Canadian dollar shot as high as C$1.0291 to the U.S. dollar, or 97.17 U.S. cents, largely on bullish hopes that U.S. and Canadian jobs data on Friday would be another signal of economic revival. [ID:nN0595130]
Strauss said he expected the currency to trade in a range between C$1.03 and C$1.04 until the release of the jobs data.
BONDS MIXED
Canadian bond prices were flat to slightly higher at the short end, but lower at the longer end, mimicking U.S. Treasuries, which firmed on Thursday ahead of the closely watched U.S. jobs report. [US/]
The two-year government bond CA2YT=RR ticked 2 Canadian cents higher to C$99.77 to yield 1.376 percent, while the 10-year bond CA10YT=RR shed 35 Canadian cents to C$113.60 to yield 4.163 percent. (Editing by Peter Galloway)
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CANADA FX DEBT-C$ steady as risk appetite holds
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CANADA FX DEBT-C$ steady as risk appetite holds
By Reuters Staff0 Min Read
* C$ rises to $1.0131
* Bond yields rise across the curve
TORONTO, Feb 7 (Reuters) - Canada's dollar held firm against the U.S. currency on Monday morning, supported by optimism about a global economic recovery and rising commodity prices.
World stocks were firmer, hovering near a 29-month high, and copper rallied to a record high while oil prices were also advancing. [MKTS/GLOB]
"We're going back to watching asset markets for direction," said Adam Cole, global head of FX strategy at RBC Capital Markets in London, noting a lack of major economic data releases this week and a risk-on tone in early trade.
"Most currencies are down against a generally stronger dollar. (Canada's dollar) is generally flattish against the (U.S.) dollar but performing reasonably well against its commodity pairs and G10 currencies."
At 8:15 a.m. (1515 GMT), the Canadian dollar CAD=D4 was at C$0.9871 to the U.S. dollar, or $1.0131, moderately firmer than Friday's North American close at C$0.9884 to the U.S. dollar, or $1.0117.
Cole said the Canadian dollar held its ground partly in a North American play on last week's employment figures, where Canada's economy created more than quadruple the 15,000 that markets had expected. [ID:nN04174016]
Although the rise in January U.S. payrolls was much smaller than expected, traders concluded the figure was affected by severe snowstorms and instead focused on a sharp drop in the jobless rate.
"The market's reading of the U.S. employment data on Friday was, on balance, better-than-expected despite what the headline number showed," said Cole. "The market has gone with the view that the weather was a major factor."
RBC put the Canadian dollar's trading range on Monday between C$0.9840-C$0.9905.
Canadian government bond yields rose across the curve, following the lead of U.S. 10-year Treasury yields, which hit their highest since May.
The two-year bond CA2YT=RR dipped 1 Canadian cent to yield 1.855 percent, while the 10-year bond CA10YT=RR fell 12 Canadian cents to yield 3.476 percent. (Reporting by Ka Yan Ng; Editing by Theodore d'Afflisio)
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CANADA FX DEBT-C$ higher on risk rally, eyes BoC
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CANADA FX DEBT-C$ higher on risk rally, eyes BoC
By Reuters Staff0 Min Read
* C$ higher at 99.83 U.S. cents
* Bonds lower across curve, track U.S. debt prices
By Jennifer Kwan
TORONTO, Dec 7 (Reuters) - Canada's dollar rose on Tuesday, boosted by a U.S. tax deal and optimism that Ireland will pass an austerity budget and ahead of a Bank of Canada interest rate announcement.
Global equities, a key barometer of investors' willingness to buy risk, rose after U.S. President Barack Obama forged a compromise with Republicans to extend Bush-era tax breaks for two years. The deal was expected to extend breaks on dividends and capital gains. For details, see [ID:nN06211347]
As well, investors were optimistic Irish lawmakers will unveil a record austerity budget on Tuesday. [ID:nLDE6B60DA]
"The FX market appears to be responding with a good degree of optimism," said Sacha Tihanyi, currency strategist at Scotia Capital.
The Canadian dollar CAD=D4 climbed to a high of C$1.0011 to the U.S. dollar, or 99.89 U.S. cents. At 7:55 a.m. (1255 GMT), it stood at C$1.0017 to the U.S. dollar, or 99.83 U.S. cents, up from C$1.0053 to the U.S. dollar, or 99.47 U.S. cents, at Monday's close.
Oil, a key Canadian export, rallied above $90 a barrel, while gold and copper futures soared to record peaks.
But Tihanyi said Canada's dollar was "underperforming a little bit" as investors were cautious ahead of the the Bank of Canada's interest rate announcement due at 9 a.m.
With markets pricing in next-to-no-chance of a move, investors will eye the accompanying statement closely.
"Even though we're up, we're still not in the upper echelon of the performance charts probably because everybody wants to see the tone of the Bank of Canada statement," said Tihanyi.
Canadian bond prices were weaker across the curve, tracking U.S. Treasuries, which fell as the market braced for fresh supply. [US/]
The two-year Canada bond CA2YT=RR was down 4 Canadian cents to yield 1.582 percent, while the 10-year bond CA10YT=RR fell 40 Canadian cents to yield 3.174 percent. (Reporting by Jennifer Kwan; editing by Jeffrey Benkoe)
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CANADA FX DEBT-C$ ends almost a penny higher after rate hike
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CANADA FX DEBT-C$ ends almost a penny higher after rate hike
By Ka Yan Ng0 Min Read
* Bank of Canada raises rate, sees slower recovery
* C$ jumps to 96.40 U.S. cents
* Bonds fall as BoC statement more balanced than expected (Adds details)
TORONTO, Sept 8 (Reuters) - The Canadian dollar finished nearly a penny higher against the U.S. currency on Wednesday after the Bank of Canada raised interest rates and kept open the possibility of further near-term rate hikes, while bonds fell sharply.
The Bank of Canada raised its key interest rate by 25 basis points for a third straight time this year, bringing the rate to 1 percent, but it cautioned that a weak U.S. economy would hamper Canada's recovery. For more see [ID:nN08241537] [ID:nN0898286].
Still, market analysts found the statement to be more balanced than expected, which lit a fire under the Canadian currency and sparked a selloff in bonds.
"The statement didn't shut any doors. They continue to monitor the data in these highly uncertain times. The language noted some high uncertainty and they also noted the extremely accommodative monetary conditions," said Sacha Tihanyi, currency strategist at Scotia Capital.
"It just goes to show that it's a very uncertain environment. The pace of rate increases is not obvious."
The Canadian dollar CAD=D4 finished at C$1.0374 to the U.S. dollar, or 96.40 U.S. cents, up from Tuesday's close of C$1.0480 to the U.S. dollar, or 95.42 U.S. cents.
The currency had jumped as high as 96.66 U.S. cents, but pared gains after the U.S. Federal Reserve's Beige Book report showed growth eased in the six weeks through the end of August, suggesting the recovery was faltering along the East Coast and in the Midwest. [ID:nWAL8KE6JM]
The two-year Canada bond CA2YT=RR dropped 29 Canadian cents to yield 1.418 percent, while the 10-year bond CA10YT=RR shed C$1.07 to yield 3.050 percent. Canadian bonds underperformed their U.S. counterparts across the curve.
The rate decision was one of the closer calls for the central bank in some time, and while market watchers said the bank's statement did not shut down the possibility of more rate hikes in the near term, market pricing on Wednesday favored no change in rates.
According to a Reuters calculation on yields on overnight index swaps, the probability of the bank leaving rates unchanged at its next policy announcement date in October faded to about 68 percent at the end of Wednesday's session from around 90 percent, right after the rate decision. BOCWATCH
The pricing is in line with a Reuters poll of Canada's 12 primary dealers after the rate announcement, which showed most sticking to previous forecasts that the central bank will leave interest rates steady for the rest of the year after a September hike. Some of the respondents said their forecasts were under review. [CA/POLL]
"Granted, there's a possibility of a hike still over the next several decisions but I don't see any conviction from the bank quite yet," said Eric Lascelles, chief macro strategist at TD Securities.
He noted that Bank of Canada Governor Mark Carney has several speaking engagements in the next month and that he will closely parse the bank chief's comments as well as monitor the incoming data.
This Friday, Carney will be participating in the Spruce Meadows Changing Fortunes Round Table in Alberta. His comments will follow Canada's August figures for employment. They are expected to show the economy added 30,000 jobs in the month. [ID:nN03113893]
The currency held gains after data showed purchasing activity in the Canadian economy jumped much more than expected in August. [ID:nN08101283] (Editing by Peter Galloway)
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CANADA FX DEBT-C$ trades sideways ahead of BoC rate decision
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CANADA FX DEBT-C$ trades sideways ahead of BoC rate decision
By Claire Sibonney0 Min Read
* C$ at 95.45 U.S. cents
* Bonds prices edge lower
* Market prices in BoC hike of 25 bps
TORONTO, Sept 8 (Reuters) - The Canadian dollar was little changed against the greenback on Wednesday as investors waited to find out whether the Bank of Canada will hike interest rates for the third time this year.
The central bank decides on interest rates at 9:00 a.m. (1300 GMT) in one of the closer calls in some time. Markets on Wednesday morning were pricing in about a 73 percent probability of a quarter-point hike to 1.00 percent, according to a Reuters calculation based on yields on overnight index swaps. BOCWATCH
A Reuters poll of 41 forecasters, including Canada's 12 primary dealers, showed a majority see a hike, followed by a pause for the rest of the year. [CA/POLL]
"There's going to be some debate as to whether or not they go but the market by and large has priced in a rate hike," said Jack Spitz, managing director of foreign exchange at National Bank Financial.
"I think the bank does go, I think the bank's guidance will be tentative, no different than it was before."
Apart from the rate decision itself, the Bank of Canada's outlook in its accompanying statement is seen as crucial in setting further direction for the domestic currency.
Elsewhere, global equities showed mixed performance while commodity prices were generally weaker, subject to another bout of on-again, off-again investor jitters, this time about European banks. [MKTS/GLOB]
At 7:44 a.m. (1144 GMT), the Canadian dollar stood at C$1.0477 to the U.S. dollar, or 95.45 U.S. cents, just a bit stronger than Tuesday's North American finish at C$1.0480 to the U.S. dollar, or 95.42 U.S. cents.
"I would see the initial reaction from a rate hike likely to sell dollar/Canada down to C$1.04 but the soft guidance might see a better (U.S.) dollar bid," added Spitz.
"But much of that better (U.S.) dollar bid would likely be on the back of global risk factors, which once again are tentative this morning if measured by euro/Swiss and dollar/yen, both trading at trend lows."
Investors are also eyeing the U.S. Federal Reserve's release of its Beige Book, due later in the day. This economic evidence gathered from the central bank's 12 regional banks will provide insight into the state of the U.S. economy, as well as U.S. retail sales data.
With risk aversion in focus, Canadian bond prices tracked U.S. Treasuries lower. [US/]
The two-year Canada bond CA2YT=RR dropped 1 Canadian cent to yield 1.276 percent, while the 10-year bond CA10YT=RR fell 19 Canadian cents to yield 2.831 percent.
(Reporting by Claire Sibonney, Editing by Chizu Nomiyama)
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CANADA FX DEBT-C$ weakens as oil, world equities slump
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CANADA FX DEBT-C$ weakens as oil, world equities slump
By Reuters Staff0 Min Read
TORONTO, June 8 (Reuters) - The Canadian dollar fell against the greenback on Monday morning as global equities dropped amid rising U.S. treasury yields and the price of oil fell on a stronger U.S. dollar.
World stocks fell on Monday as yields on 10-year U.S. Treasuries hit a seven-month high and the U.S. dollar strengthened on speculation the Federal Reserve may have to tighten interest rates sooner than anticipated. [MKTS/GLOB]
U.S. stock index futures pointed down about 1 percent on Monday after three weeks of gains. [ID:nN08303232]
Friday's stronger-than-expected U.S. jobs data helped to fuel optimism about economic recovery [ID:nN05274048], said George Davis, chief technical strategist at RBC Capital Markets.
"A lot of people are looking at a recovery in the employment picture as being essential for any type of sustained recovery in the U.S. economy because it's so dependent on the consumer," Davis said. "That, I think, is what has been filtered into expectations the market is more firmly anchored on a potential recovery scenario."
In turn, the jobs data have helped to fuel speculation the U.S. Federal Reserve may increase interest rates sooner than what was priced into the curve, pushing up yields and boosting the U.S. currency, he added.
At 7:55 a.m. (1155 GMT), the Canadian currency was at C$1.1218 to the U.S. dollar, or 89.14 U.S. cents, down from C$1.1190 to the U.S. dollar, or 89.37 U.S. cents at Friday's session close.
Also weighing on the Canadian unit was the price of oil CLc1, which fell towards $67 a barrel on Monday as a stronger dollar prompted a retreat from a high above $70 hit last week. [ID:nSP162458]
Canadian bond prices were mixed, following along U.S. Treasuries where the two-year U.S. Treasury yields hit seven -month highs in Europe on Monday.[ID:nL8475367] (Reporting by Jennifer Kwan; Editing by Padraic Cassidy)
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CANADA FX DEBT-C$ hits 2-week high on "stunning" jobs report
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CANADA FX DEBT-C$ hits 2-week high on "stunning" jobs report
By Jennifer Kwan0 Min Read
* C$ ends at 96.74 U.S. cents; up 2.8 pct for week
* Canada adds 93,200 jobs in June
* Bond prices fall on rising rate expectations (Updates to close, adds quote)
TORONTO, July 9 (Reuters) - Canada's dollar soared and yields on its bond climbed on Friday on news the economy created six times more jobs than forecast in June, pressuring the Bank of Canada to raise interest rates again this month.
The Canadian dollar CAD=D4 jumped more than a penny to touch a session high of C$1.0296 to the U.S. dollar, or 97.13 U.S. cents, its strongest level since June 23.
Canadian employment surged by 93,200 in June, far exceeding market predictions of a 15,000 gain and contradicting other recent data suggesting the country's galloping economic recovery was slowing. [ID:nN09261751]
"Today's job report was actually quite stunning. It's not just the individual number it's the rate of growth that we've had for the last several months," said Firas Askari, head of foreign exchange trading at BMO Capital Markets.
"This has sort of changed things for (Bank of Canada Governor Mark) Carney in the sense that there's no doubt about the strength of Canadian jobs growth, which is obviously a big fundamental of the Canadian economy."
The Canadian dollar finished at C$1.0337 to the U.S. dollar, or 96.74 U.S. cents, up from Thursday's finish at C$1.0440 to the U.S. dollar, or 95.79 U.S. cents. The currency gained 2.8 percent for the week, its biggest weekly gain in a month.
The employment report represented the final major data ahead of the July 20 Bank of Canada rate decision.
In a Reuters poll conducted following the jobs report all of Canada's primary securities dealers predicted that the Bank of Canada would raise interest rates by 25 basis points this month and again in September. But some forecast a pause later this year on uncertainty about the pace of global economic growth. [CA/POLL]
Analysts said given global economic uncertainty, Carney is likely to keep his options open when he speaks following the July 20 decision.
"He still has justification for not even going and he has justification for tightening so he really is in a catbird seat," said BMO's Askari.
"I guarantee you he is the envy of every other central bank governor in the G7 because the Canadian economy is outperforming just about everybody else."
Yields on overnight index swaps, which trade based on expectations for the Bank of Canada's key policy rate, showed the market sees an 84 percent chance of a July rate hike, compared to about 61 percent on Thursday. BOCWATCH
Still, investors will keep a close eye on two key surveys conducted by the central bank that will be release on Monday.
"The last piece of the puzzle before the BoC decides will be Monday's Business Outlook and Senior Loan Officer surveys," said David Watt, senior fixed income and currency strategist at RBC Capital Markets.
With a near-term rate hike largely priced in, Canadian bond prices retreated. The two-year government bond CA2YT=RR fell 17 Canadian cents to yield 1.714 percent, while the 10-year bond CA10YT=RR sank 35 Canadian cents to yield 3.238 percent.
Canadian bonds underperformed U.S. Treasuries, with the Canadian 2-year government bond yield 108 basis points above its U.S. counterpart, up from about 101 in the previous session. (Editing by Jeffrey Hodgson)
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CANADA FX DEBT-C$ turns higher but locked in range
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CANADA FX DEBT-C$ turns higher but locked in range
By Ka Yan Ng0 Min Read
* Canadian dollar edges up to 97.37 U.S. cents
* C$ touches highest level in more than 7 weeks
* Bonds mixed
TORONTO, March 9 (Reuters) - The Canadian dollar rallied to turn slightly higher versus the U.S. dollar on Tuesday afternoon as the price of oil pared earlier losses and North American equity markets offered a mixed performance.
There was some cautious movement on stock markets, often a barometer of risk appetite for the Canadian dollar. [.TO] [.DJI] [.N]
A steady drumbeat of corporate news lifted specific stocks on the anniversary of U.S. markets hitting 12-year closing lows, while in Toronto, the main index was down moderately on weakness in resource issues.
Still, the commodity-linked currency bloc of the Canadian, Australian and New Zealand dollars was a strong performer on Tuesday, even as prices of resources took on a weaker tone. The price of oil, a key Canadian export, was trading around $81 a barrel. CLc1 [O/R]
"The currency landscape is reflecting a mixed bag today. Typically the market trades based on risk elements but risk itself is uneven," said Jack Spitz, managing director of foreign exchange at National Bank Financial.
"And yet, despite that, commodity currencies are leading the price valuation today."
The Canadian currency is on track for an eighth straight higher close. It has risen sharply on evidence that the domestic economy is recovering and on a slightly more hawkish tone from the Bank of Canada.
It has largely traded in a C$1.0250-C$1.0350 range recently, though it briefly advanced to its highest level in more than seven week at C$1.0235 to the U.S. dollar, or 97.70 U.S. cents, early Tuesday afternoon.
At 3:15 p.m. (2015 GMT), the currency was at C$1.0270 to the U.S. dollar, or 97.37 U.S. cents, up from C$1.0276 to the U.S. dollar, or 97.31 U.S. cents, at Monday's close.
BONDS MIXED
Bond prices were mixed, following a U.S. three-year note auction, with the short-end on the rise while the longer-dated issues remained in negative territory.
The two-year Canadian government bond CA2YT=RR was up 4 Canadian cents at C$99.96 to yield 1.520 percent, while the 10-year bond CA10YT=RR dipped 2 Canadian cents to C$101.83 to yield 3.516 percent. (Reporting by Ka Yan Ng; editing by Rob Wilson)
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UPDATE 1-C$ flees parity on broadbased greenback recovery
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UPDATE 1-C$ flees parity on broadbased greenback recovery
By Claire Sibonney0 Min Read
* C$ hits strongest level since Oct. 14, but pares gains
* Flees parity to trade at 99.65 U.S. cents
* Bond prices fall across curve (Recasts, updates to mid-afternoon)
TORONTO, Nov 9 (Reuters) - The Canadian dollar eased away from parity against its U.S. counterpart on Tuesday, pressured by a bounce in the greenback and a broad flight from riskier assets.
Earlier, Canada's currency edged above one-for-one footing with the U.S. dollar to its strongest levels since Oct. 14, as commodity prices rallied and a lift in the euro helped whet appetite for other risk-related plays.
But the euro faltered as investors worried about Irish and Portuguese government debt and hedged sizable bets against the U.S. dollar.
"It's been a broad market move, euro has kind of led it, sterling's followed, gold has absolutely collapsed," said Sacha Tihanyi, currency strategist at Scotia Capital."
"It's really the dollar moving very much higher ... equities are all moving in the same direction as well. It's a risk move by the looks of it considering everything moving in tandem like this."
Growing inflation fears among some investors and pressure on the greenback after the U.S. central bank's actions to bolster the U.S. economic recovery had boosted the prices of crude oil and gold -- key Canadian commodities. Gold hit a record high on Tuesday before retreating. [GOL/]
At 2:28 p.m. (1928 GMT), the Canadian dollar CAD=D4 was C$1.0035 to the U.S. dollar, or 99.65 U.S. cents, practically flat compared to C$1.0037 to the U.S. dollar, or 99.63 U.S. cents, on Monday, when it closed lower for the first time in eight sessions.
In early trade, the Canadian dollar firmed as high as 99.80 Canadian cents to the U.S. dollar, or $1.002.
Tihanyi said that precise level, last hit on Oct. 14, continues to provide short-term resistance for the Canadian dollar. On the support side, he was looking at recent weakness around C$1.0080, or 99.21 U.S. cents.
At this point, Tihanyi said parity is still in reach.
"Parity loses its meaning psychologically the more you trade around it so I think it certainly is still achievable."
Canadian government bond prices were lower across the curve, weighed down by declines in U.S. Treasuries.
The two-year bond CA2YT=RR lost 11 Canadian cents to yield 1.590 percent, while the 10-year bond CA10YT=RR shed 60 Canadian cents to yield 2.960 percent. (Editing by Jeffrey Hodgson)
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CANADA FX DEBT-C$ flat as investors await news on Greece
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CANADA FX DEBT-C$ flat as investors await news on Greece
By Claire Sibonney0 Min Read
* C$ little changed at 93.66 U.S. cents
* Bonds mixed
TORONTO, Feb 10 (Reuters) - Canada's currency was little changed against the U.S. dollar on Wednesday as investors sought clarity on whether Greece will get financial aid and North American trade gap figures underwhelmed.
Euro zone countries were holding intensive talks about a possible financial rescue for debt-stricken Greece and European Union leaders are set to hold a special summit on the economy on Thursday.
"It's a story of Europe and whether or not there will be a strategy released from the EU as to how they're going to deal with the weaker states, or weaker members, and I think the market is very much focused on that," said Camilla Sutton, a currency strategist at Scotia Capital.
"There's an awful lot of headlines going back and forth and that's having an impact across currency markets and on Canada as well."
At 9:30 a.m. (1430 GMT) the Canadian dollar was at C$1.0677 or 93.66 U.S. cents, up slightly from Tuesday's close at C$1.0679 or 93.64 U.S. cents.
Sutton points to mixed trade deficit figures from both Canada and the United States that initially saw the Canadian dollar drop slightly.
Canada's trade deficit widened in December to a level more than twice what was expected as trade with non-U.S. countries deteriorated further, but was offset by a downward revision in November figures to C$201 million from C$344 million. [ID:nN10146780]
The U.S. trade deficit widened unexpectedly in December to $40.2 billion, fueled by the highest oil prices and oil imports since October 2008, but both exports and imports increased month over month, a positive sign for economy.
"The data was slightly confusing and dollar/Canada's reaction was to move higher, so a little bit of Canadian weakness but really we're not too far from where we were at the open," said Sutton.
Traders will also look ahead to Federal Reserve Chairman Ben Bernanke's testimony at 10 a.m. (1500 GMT) for an outline on the Fed's exit strategy for tightening monetary policy.
Canadian bond prices were mixed as uncertainty over rescue plans for Greece contributed to the risk-on, risk-off trend.
The two-year bond CA2YT=RR was up 1.5 Canadian cents to C$100.45 to yield 1.277 percent, while the 10-year bond CA10YT=RR rose 2 Canadian cents to C$102.92 to yield 3.381 percent. (Reporting by Claire Sibonney; Editing by Jeffrey Hodgson)
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CANADA FX DEBT-C$ slips, but outperforms on PetroChina news
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CANADA FX DEBT-C$ slips, but outperforms on PetroChina news
By 0 Min Read
* C$ eases to $1.0021
* PetroChina pays C$5.4 bln for Canadian gas assets
* Bonds flat-to-lower despite risk-off environment
* BoC Deputy Governor John Murray speaks in Regina
By Ka Yan Ng
TORONTO, Feb 10 (Reuters) - Canada's dollar slipped to its lowest in more than a week against the U.S. dollar on Thursday morning, pressured by overall risk aversion, but outperformed other currencies as PetroChina made a big investment in a Canadian natural gas asset.
After nine months of talks, Encana Corp ECA.TO announced late Wednesday that it will sell half of a prolific Canadian shale gas project to PetroChina 601857.SS for C$5.4 billion, marking the largest Chinese investment yet in a foreign natural gas asset. [ID:nN09296031]
"Where we are positioned relative to other currencies overnight is largely reflecting foreign investment news overnight. That's giving us a little bit of outperformance relative to other currencies in this risk-off environment," said David Watt, senior currency strategist at RBC Capital Markets.
"We're only behind the (U.S.) dollar and the British pound."
At 8:05 a.m. (1305 GMT), the Canadian dollar CAD=D4 was at C$0.9979 to the U.S. dollar, or $1.0021, down from Wednesday's North American session at C$0.9939 to the U.S. dollar, or $1.0061. The Canadian dollar fell as low as C$0.9988 to the U.S. dollar, or $1.0012, its lowest since Feb. 1.
Strong corporate earnings and the expectations of more to come have been a major driver of equities in the past year, backed by an improving economic climate. But a wave of disappointing results weighed on global stock markets on Thursday, and paused the recent draw of riskier assets. [MKTS/GLOB]
But the pause did not translate to a rush into the safety of government debt either. Canadian government bonds held flat to lower on Thursday ahead of data and $24 billion sale of 30-year U.S. debt.
The two-year Canadian government bond CA2YT=RR was off 1 Canadian cent to yield 1.876 percent, while the 10-year bond CA10YT=RR eased 5 Canadian cents to yield 3.458 percent.
Investors looked to new home price figures on Thursday as well as a speech about commodity prices by Bank of Canada Deputy Governor John Murray in Regina, Saskatchewan.
(Reporting by Ka Yan Ng, Editing by Chizu Nomiyama)
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CANADA FX DEBT-C$ falls on soft U.S. retail sales report
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CANADA FX DEBT-C$ falls on soft U.S. retail sales report
By John McCrank0 Min Read
* C$ falls to 96.48 U.S. cents
* U.S. retail sales had risen for seven straight months
* Bond prices rise following a slump in recent days
TORONTO, June 11 (Reuters) - Canada's dollar fell against the greenback on Friday after a weaker-than-expected retail sales report out of the United States, which consumes around three quarters of Canadian exports.
U.S. retail sales, which had risen for seven straight months, unexpectedly fell in May due to a record slump in building materials purchases, added to fears the economic recovery was losing some steam. [ID:nN11109609]
Total retail sales dropped 1.2 percent, versus forecasts of 0.2 percent growth.
"The soft U.S. retail sales report might flag a softening of Canadian exports to the U.S., if the U.S. consumer is indeed flagging," said Sal Guatieri, a senior economist at the BMO Capital Markets.
At 9.06 a.m., The Canadian dollar was at C$1.0365 to the U.S. dollar, or 96.48 U.S. cents, compared with Thursday's North American finish of C$1.0312 to the U.S. dollar, or 96.97 U.S. cents.
The price of U.S. crude oil tumbled after the retail sales report from the world's No. 1 energy user, to below $74 a barrel from the $75 mark. [O/R]
Canada is the biggest oil supplier to the United States, and its currency is often influenced by moves in it, as well as other commodities that Canada produces.
CANADIAN BONDS EXTEND GAINS
Canadian bond prices extended gains across the curve after the U.S. data. Prices had fallen in recent days as investor became less risk averse.
The two-year government bond CA2YT=RR rose 3 Canadian cents to yield 1.804 percent, while the 10-year bond CA10YT=RR rose 40 Canadian cents to yield 3.387 percent. (Editing by Jeffrey Hodgson)
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CANADA FX DEBT-C$ sags for fourth straight session
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CANADA FX DEBT-C$ sags for fourth straight session
By 0 Min Read
* C$ closes at C$1.1015 to US$, or 90.79 U.S. cents
* Touches lowest level since July 22
* Softer commodity prices, housing data weigh
* Bond prices extend recent bounce (Updates to session close)
By Frank Pingue and Ka Yan Ng
TORONTO, Aug 11 (Reuters) - The Canadian dollar closed lower against the greenback for a fourth straight session on Tuesday as a drop in commodity prices and an unexpectedly weak domestic housing report sapped investors' risk appetite.
At one point, the currency slipped to C$1.1048 to the U.S. dollar, or 90.51 U.S. cents, its lowest level in nearly three weeks. It managed to move off the session low but was unable to snap its latest skid.
Part of the drag on the Canadian dollar came from a slide in the price of oil, a key Canadian export, as doubts about the pace of a global economic recovery weighed on crude prices. [ID:nSP473359]
Also weighing on the currency was a report that showed Canadian housing starts unexpectedly dropped 4.1 percent in July after two months of gains. [ID:nN11509601]
"We saw the Canadian dollar get hit on all fronts today," said Tyson Wright, senior foreign exchange trader at Custom House, a currency services firm in British Columbia.
"At the same time, these are illiquid summer markets so the moves aren't too big, but we did pop up over C$1.10 and there could be some more downside for the Canadian dollar," he said.
Wright also said the currency was still feeling the effects of comments made last week by Finance Minister Jim Flaherty, who said the nation's economic recovery could be hurt by the rapid rise in the Canadian dollar and that steps could be taken to slow that rise. [ID:nN04143584]
The Canadian dollar closed at C$1.1015 to the U.S. dollar, or 90.79 U.S. cents, down from C$1.0887 to the U.S. dollar, or 91.85 U.S. cents, at Monday's close.
The currency remains a comfortable 18.6 percent above the four-year low it hit on March 9, but its latest pullback has also left it 3.5 percent below the 10-month high it reached last week, before its latest retreat.
"There has been no fundamental change or shift in the way the world views the Canadian economy or the Canadian dollar," said Jack Spitz, managing director of foreign exchange at National Bank Financial. "I think it's just simply a technical retracement and a pullback of risk ahead of a fairly large slate of data."
Traders are awaiting Wednesday's policy statement from the U.S. Federal Reserve and speculated whether upcoming data would offer further evidence of an economic recovery.
BOND PRICES RALLY
Canadian bond prices ended higher across the curve for the second straight session, given a combination of soft equities and solid demand for a U.S. bond auction that influenced trade in Canada as well.
A huge bid by foreign investors galvanized demand at the record three-year U.S. Treasury note auction, which also helped to alleviate concerns about waning appetite for U.S. government debt as the economy starts to recover. [ID:nN11495130]
Domestic bonds could get some home-grown direction when the June merchandise trade figures are released on Wednesday. That will be followed by Friday's June manufacturing sales data.
Also, Bank of Canada Governor Mark Carney is scheduled to speak to the Canadian Financial Forum in Beijing at 9:20 p.m (0120 GMT). Carney will participate in a press conference scheduled for 1:30 a.m. on Wednesday.
The two-year Canadian bond rose 14 Canadian cents to C$99.31 to yield 1.342 percent, while the 10-year bond rose 45 Canadian cents to C$102.07 to yield 3.498 percent.
The 30-year bond gained 90 Canadian cents to C$116.95 to yield 3.985 percent. In the United States, the 30-year bond yielded 4.437 percent.
Canadian bonds underperformed their U.S. counterparts across most of the curve. The Canadian 30-year bond was about 45.2 basis points below the U.S. 30-year yield, versus about 48.8 basis points below on Monday.
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CANADA FX DEBT-C$ turns higher ahead of Fed, bonds lower
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CANADA FX DEBT-C$ turns higher ahead of Fed, bonds lower
By Frank Pingue0 Min Read
* C$ charges off overnight low of C$1.1077
* Canada's trade deficit shrinks in June
* Bond prices stuck lower across curve (Recasts)
TORONTO, Aug 12 (Reuters) - The Canadian dollar bounced off a three-week low and turned higher on Wednesday as the greenback relinquished recent gains on caution ahead of the U.S. Federal Reserve policy statement due later in the day.
The turn higher follows a string of four straight lower closes versus the U.S. dollar as falling equities dented demand for riskier currencies.
"What we're seeing is a reversal of the past couple trading sessions where we saw risk off and U.S. dollar bid scenarios no matter what was coming out," said Firas Askari, head of foreign exchange trading at BMO Capital Markets.
The pullback in the U.S. currency came although the Fed is widely expected to hold its benchmark overnight rate in a range of zero to 0.25 percent. Market focus will be on the Fed's statement and how the U.S. central bank characterizes the recovery. [ID:nN10470294])
At 11:25 a.m. (1525 GMT), the Canadian unit was at C$1.0899 to the U.S. dollar, or 91.75 U.S. cents, up from C$1.1015 to the U.S. dollar, or 90.79 U.S. cents, on Tuesday.
That was also up from the overnight low C$1.1077 to the U.S. dollar, or 90.28 U.S. cents, which marked a new three-week low for the currency.
Also aiding the Canadian dollar was data that showed Canada's trade deficit came in at a much smaller than expected C$55 million in June from C$1.1 billion in May. [ID:nN12380828]
Askari noted that there is little liquidity in the market given the generally quiet August trading period, which he said was likely contributing to the big swings in direction for the Canadian dollar.
Canadian Finance Minister Jim Flaherty, speaking to reporters after three days of meetings in Beijing, said global policymakers must secure a rock-solid economic recovery before they turn their attention to exit strategies from stimulus policies or a discussion of exchange rates.
Flaherty also repeated that the positive signs in the economy have been encouraging but tentative. [ID:nPEK61145]
BOND PRICES ALL LOWER
Canadian bond prices were lower across the curve, mirroring the direction in the bigger U.S. Treasury market, as a rally in North American equities dampened the attraction of safe-haven government debt.
But the move was limited ahead of Fed's policy statement, which may contain clues to whether the central bank may tweak its Treasury purchases, the pillar of its quantitative easing strategy for reviving the economy.
The two-year Canadian bond was down 1 Canadian cent at C$99.29 to yield 1.353 percent, while the 10-year bond slipped 37 Canadian cents to C$101.68 to yield 3.545 percent.
The 30-year bond slipped 55 Canadian cents to C$116.40 to yield 4.015. In the United States, the 30-year bond yielded 4.479 percent. (Editing by Peter Galloway)
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CANADA FX-C$ softer ahead of rate decision
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CANADA FX-C$ softer ahead of rate decision
By Reuters Staff0 Min Read
TORONTO, April 12 (Reuters) - The Canadian dollar was slightly weaker on Tuesday ahead of the Bank of Canada's interest rate decision, joining a sell-off in riskier assets including global stocks and commodities.
Global share prices slipped on Tuesday while commodity prices tumbled from record peaks after a Goldman Sachs report advised investors to lock in profits before oil and other commodity markets reverse. [MKTS/GLOB]
"In spite of the upcoming BoC rate announcement set for 9:00 this morning - which often dampens price moves in the days/hours leading up to it - the pair saw some volatility last night as it reacted in line with broader macro movers," Jack Spitz, managing director of foreign exchange at National Bank Financial, said in a note to clients.
"Assuming that no change in rates is a foregone conclusion - we will be looking for (Bank of Canada Governor Mark) Carney et al. to walk a very tight line between preparing the market for future rate hikes while trying not to exacerbate strength in the loonie."
The currency CAD=D4 was trading at C$0.9581 to the U.S. dollar, or $1.0437, compared with its close on Monday at C$0.9565 to the U.S. dollar, or $1.0455.
All 41 economists and strategists in a Reuters poll released on Thursday expected the Bank of Canada to keep its benchmark interest rate unchanged at 1 percent. [CA/POLL] [BOC-PRE] (Reporting by Jeffrey Hodgson, Editing by Chizu Nomiyama)
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CANADA FX DEBT-C$ softens as China tightening weighs
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CANADA FX DEBT-C$ softens as China tightening weighs
By Claire Sibonney0 Min Read
* C$ slightly down at 94.99 U.S. cents
* Bonds lifted by risk aversion on China moves
TORONTO, Feb 11 (Reuters) - Canada's currency weakened against the U.S. dollar on Friday, hurt by a surprise monetary policy tightening in China, even as strong Canadian economic fundamentals helped it maintain much of its recent gains.
China raised the level of reserves that banks must hold for the second time this year, spooking financial markets on the eve of its New Year holiday by showing it was intent to curb lending and inflation. [ID:nTOE61B069]
The Canadian dollar dipped after the news created a bout of risk aversion on fear that a slowdown in global growth could hurt the currency. But it managed to hold on to much of the strong gains it made on Thursday.
"Most investors are turning to Canada on a relative basis, as a very good long play," said Camilla Sutton, currency strategist at Scotia Capital.
"We have a strong fiscal position, stronger economic base, sentiment is in favor of Canada, so all in all Canada continues to outperform on its crosses."
At 9:17 a.m. (1417 GMT), the Canadian dollar was at C$1.0527 to the U.S. dollar, or 94.99 U.S. cents, slightly down from Thursday's close at C$1.0512 to the U.S. dollar. The currency on Thursday hit its highest level in two weeks.
"All in all a little bit of tightening from China is a good medium-term story because it helps to prevent an asset bubble and so I think that Canada has clawed back and is now performing on the crosses," said Sutton, referring to the Canadian dollar's recent outperformance against most currencies, including the euro.
While commodity prices have moved higher over the last few days, a dip in oil and gold on Friday weighed on the Canadian dollar.
Oil fell by more than $1 to near $74 a barrel while gold slid 1.5 percent after China's surprise move. [O/R] [GOL/]
With global equitiy and commodity markets rattled by China, risk aversion was back up, lifting Canadian bond prices.
U.S. Treasury debt prices also rose, rebounding from a selloff Thursday as Asian buyers returned to the market and investors looked forward to a week with no new supply. [US/]
The two-year bond CA2YT=RR was up 5 Canadian cents at C$100.300 to yield 1.350 percent, while the 10-year bond CA10YT=RR added 9 Canadian cents to C$102.320 to yield 3.455 percent. (Reporting by Claire Sibonney; Editing by Jeffrey Hodgson)
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CANADA FX DEBT-C$ flat as investors eye U.S. earnings
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CANADA FX DEBT-C$ flat as investors eye U.S. earnings
By Frank Pingue0 Min Read
* C$ bounces comfortably off overnight low
* Awaits direction from U.S. corporate earnings
* Bond prices flat across the curve
TORONTO, July 13 (Reuters) - Canada's dollar was relatively flat versus the U.S. currency on Monday as investors opted out of major commitments ahead of the flurry of quarterly results due this week from U.S. bellwether companies.
A general aversion to risk had dragged the Canadian dollar down to as low as C$1.1671 to the U.S. dollar, or 85.68 U.S. cents, overnight before it staged a rebound to C$1.1620 to the U.S. dollar, or 86.06 U.S. cents.
However, there was little conviction behind the currency's move as investors were largely biding their time until catching a glimpse of quarterly results due this week from the big U.S. banks and industrial bellwethers.
"We're really just range trading waiting for the corporate news out of the U.S. which is really by far the most important driver this week," said Adam Cole, global head of FX strategy at RBC Capital Markets in London. "So we're bouncing around in a range today waiting for some direction in equities."
At 7:40 a.m. (1140 GMT), the Canadian unit was at C$1.1634 to the U.S. dollar, or 85.95 U.S. cents, up from C$1.1647 to the U.S. dollar, or 85.86 U.S. cents, at Friday's close.
Capping the Canadian dollar's rise was a slide in prices for key Canadian exports like oil and gold. Oil prices slipped below $60 a barrel, heading toward a seven-week low given concerns over the state of the global economy. Meanwhile, gold prices also edged lower.
The Canadian data due this week are the manufacturing sales report for May due out on Wednesday, followed by the more key consumer price index figures for June due on Friday.
Domestic bond prices were flat across the curve. (Editing by Theodore d'Afflisio)
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CANADA FX DEBT-C$ rises after Bank of Canada surveys
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CANADA FX DEBT-C$ rises after Bank of Canada surveys
By Reuters Staff0 Min Read
* C$ higher at C$1.1544 to the U.S. dollar
* Unit helped by Bank of Canada surveys
* U.S. stock market rise also fuels gain
(Adds details, quote)
TORONTO, July 13 (Reuters) - Canada's dollar strengthened against the U.S. currency on Monday, helped by a rebound in equity markets and pair of Bank of Canada surveys that showed signs of improved business sentiment.
Lending conditions in Canada continued to tighten in the second quarter, according to the surveys of businesses and senior loan officers released on Monday, but the number of respondents pointing to tighter conditions declined and some aspects of business sentiment improved. [ID:nOTW000406]
"In general, given the positive aspects of those reports we have seen some interest to buy Canadian dollar," said George Davis, chief technical strategist at RBC Capital Markets, who also noted the Canadian unit gained momentum once the U.S. dollar breached the C$1.1585 level.
Another factor helping the currency higher was a rally in U.S. equity markets as bank shares gained following an upgrade on Goldman Sachs Group GS.N and bullish comments from an influential bank analyst. [ID:nN13417348]
"What we have seen lately is when equity markets have done better so does the Canadian dollar," added Davis.
At 12:06 p.m. (1606 GMT), the Canadian unit was at C$1.1544 to the U.S. dollar, or 86.63 U.S. cents, up from C$1.1647 to the U.S. dollar, or 85.86 U.S. cents, at Friday's close.
Capping the Canadian dollar's rise was a drop in prices for key Canadian exports like oil, which slipped below $60 a barrel on concerns over the state of the global economy. [ID:nLD322824]
Domestic bond prices were mixed across the curve, mirroring the U.S. Treasury debt market where prices were mixed as investors assessed risk and supply concerns. [ID:nN13423572] (Reporting by Jennifer Kwan; Editing by Jeffrey Hodgson)
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CANADA FX DEBT-C$ rises on soft U.S. data, bond prices ease
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CANADA FX DEBT-C$ rises on soft U.S. data, bond prices ease
By Reuters Staff0 Min Read
* C$ rises to 92.17 U.S. cents, underperforms other majors
* Bond prices dip as stocks gain
* European data and U.S. data contrast
TORONTO, Aug 13 (Reuters) - Canada's currency edged higher on Thursday against a greenback that was pressured by disappointing U.S. economic data.
U.S. retail sales dipped an unexpected 0.1 percent in July. [ID:nN12109251] Data also showed the weak U.S. labor market struggled to stabilize with the latest jobless claims rising slightly last week. [ID:nN13489469]
Also, the euro zone's two biggest economies, Germany and France, defied expectations with returns to growth in the second quarter, which helped drag the U.S. dollar lower [ID:nLD331672] [ID:nN13229983] despite the U.S. Federal Reserve's statement on Wednesday that the worst of the financial crisis is over. [ID:nN1272730]
While soft U.S. economic news has tended to drive safe-haven flows to the U.S. dollar during the financial crisis, it did the opposite on Thursday.
"The traditional safe-haven story isn't playing out right now," said Eric Lascelles, chief economics and rates strategist at TD Securities.
"The U.S. dollar seems to be softening on sour economic news as opposed to strengthening on safe-haven flows. That seems to be why the vast majority of currencies out there are substantially up."
The Canadian dollar was one of the softest performers among major currencies. Its 0.4 percent gain versus the U.S. dollar on Thursday paled in comparison to the more than 1 percent rise in its sister commodity currencies, the Australian and New Zealand dollars.
A strong open to North American equity markets and a firm oil price also supported the Canadian dollar.
At 9:30 a.m. (1330 GMT), the Canadian dollar was at C$1.0850 to the U.S. dollar, or 92.17 U.S. cents, up from C$1.0884 to the U.S. dollar, or 91.88 U.S. cents, at the close on Wednesday, when it snapped a four-day skid.
BOND PRICES EASE
A positive tone to equities as well as the surprising growth data overseas contributed to slightly lower Canadian bond prices across the curve.
The disappointing U.S. data offset some of the decline.
The two-year Canadian bond was off 1 Canadian cent at C$99.34 to yield 1.328 percent, while the 10-year bond slipped 15 Canadian cents to C$101.75 to yield 3.536 percent.
The 30-year bond eased 10 Canadian cents to C$116.60 to yield 4.004. In the United States, the 30-year bond yielded 4.518 percent. (Reporting by Ka Yan Ng; editing by Peter Galloway)
Our Standards: The Thomson Reuters Trust Principles.
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CANADA FX DEBT-C$ ticks higher, bonds follow U.S. Treasuries
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CANADA FX DEBT-C$ ticks higher, bonds follow U.S. Treasuries
By Reuters Staff0 Min Read
* C$ edges up to 99.14 U.S. cents
* Canadian bond yields follow U.S. Treasuries higher
TORONTO, Nov 15 (Reuters) - Canada's dollar edged up against the U.S. dollar on Monday, mostly keeping within recent ranges in a quiet start to the week that had investors mostly eyeing external influences.
The currency's range so far in the session was narrower than Friday's, trading between C$1.0083-C$1.0140. At 8:10 a.m. (1310 GMT), the Canadian dollar CAD=D4 was at C$1.0087 to the U.S. dollar, or 99.14 U.S. cents, down from C$1.0091 to the U.S. dollar, or 99.10 U.S. cents, at Friday's close.
"The U.S. dollar is actually making some strides here, but the Canadian dollar is up a little and the story here is that it is still firmly embedded in the range of the last several weeks," said Eric Lascelles, chief Canada macro strategist, at TD Securities.
The Canadian dollar stayed on the sidelines while the U.S. dollar index hit a six-week high, boosted by a rise in U.S. Treasury yields that helps keep yield spreads wide versus government debt yields in other countries, maintaining the appeal of U.S. assets. [ID:nLDE6AE0ZM] [FRX/]
Stock markets, a barometer of risk appetite, were firmer as investors anticipated Ireland would seek help to manage its debts, easing fears about the stability of the euro zone. [MKTS/GLOB]
News that BHP Billiton had officially scrapped its $39 billion bid for Canadian fertilizer giant Potash Corp. had little impact on the Canadian dollar. Ottawa had blocked the proposed takeover of the year earlier in the month, and the Canadian dollar had retreated on assumptions that the bid would not be revived. [ID:nSGE6AD04O] [ID:nN04255002]
A rebound in the price of oil, a key Canadian commodity, was also supportive.
Canadian government bond yields rose in concert with U.S. Treasuries, which advanced after criticism from some U.S. Federal Reserve officials raised doubt about it latest program to buy Treasury bonds.
The two-year bond CA2YT=RR slipped 9 Canadian cents to yield 1.633 percent, while the 10-year bond CA10YT=RR was down 45 Canadian cents to yield 3.067 percent.
(Reporting by Ka Yan Ng)
Our Standards: The Thomson Reuters Trust Principles.
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CANADA FX DEBT-C$ rebounds a penny but still down on day
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CANADA FX DEBT-C$ rebounds a penny but still down on day
By Ka Yan Ng, Claire Sibonney0 Min Read
* C$ pares losses to $1.0127
* Bond prices soar on safety bid
* Japan braces for potential radiation catastrophe (Adds details, updates prices)
TORONTO, March 15 (Reuters) - The Canadian dollar dived to its lowest level in more than four weeks against the U.S. dollar on Tuesday morning as the market rushed to the safe-haven greenback on growing fears of a radiation catastrophe in Japan.
Aversion to risk also drove world stock markets lower with Japanese equities falling more than 10 percent .N225, and most North American stock indexes down around 2 percent. The price of oil -- usually a leading factor in the Canadian dollar's direction -- also dropped sharply. [MKTS/GLOB] [O/R]
Japan faced a catastrophe after an earthquake-crippled nuclear power plant exploded and sent low levels of radiation floating towards Tokyo. [ID:nLDE72D2FT]
"Going forward I think this crisis too will pass, the market is trying to grapple for information and see the extent of the contagion and just how bad it's going to be," said Firas Askari, head of foreign exchange trading at BMO Capital Markets.
The Canadian dollar fell as low as C$0.9974 to the U.S. dollar, or $1.0026, its weakest point since Feb. 11, plunging out of the range between C$0.97 and C$0.98 that it had been locked in for most of the past two weeks.
"The whole stampede into risk aversion is forcing this U.S. dollar/Canada correction," said Mike O'Neill, managing director at Knightsbridge Foreign Exchange. He said that if the currency breaches C$0.9980, it could set the stage for a return to C$1.0240, a level not seen since December.
He said the Canadian dollar has been "extremely overbought" for some time, and that a correction has long been overdue.
The move was dramatic and volumes were strong. By 10:15 a.m. (1415 GMT), the Canadian dollar had already rebounded a penny from the day's low, trading at C$0.9875 to the U.S. dollar, or $1.0127. But it was still down from Monday's close of C$0.9726 to the U.S. dollar, or $1.0282.
"There has been a good supply of U.S. dollars all the way up, to be frank, the volumes have been pretty good and we're seeing some longer-term players actually buying cheaper Canada," Askari said.
"I do like buying Canada. I just think you have to be very nimble, especially on a day like today. Strategically you probably want to start buying some Canadian dollars anywhere above C$0.99."
BONDS ADVANCE
Bonds were well-supported by the flight-to-safety bid, pushing prices higher across the curve. The two-year Canadian government bond CA2YT=RR surged 22 Canadian cents to yield 1.557 percent, while the 10-year bond CA10YT=RR advanced 30 Canadian cents to yield 3.187 percent.
Market players also looked ahead to Tuesday's U.S. Federal Reserve policy meeting, which was expected to result in no change in policy stance. The U.S. central bank meeting's "importance is diminishing" said O'Neill, pointing to the focus on Japan developments.
Earlier, Canadian data that showed that productivity rose more last year than in any year since 2005 was overshadowed by the Japan news. [ID:nN15227998] (Reporting by Ka Yan Ng; editing by Peter Galloway)
Our Standards: The Thomson Reuters Trust Principles.
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CANADA FX DEBT-C$ softens following U.S., Canadian data
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CANADA FX DEBT-C$ softens following U.S., Canadian data
By Solarina Ho0 Min Read
* C$ C$0.9714 to the U.S. dollar, or $1.0294
* Bonds mostly firmer as risk-off sentiment returns
TORONTO, June 15 (Reuters) - The Canadian dollar slipped against its U.S. counterpart on Wednesday, following weak Canadian manufacturing data and a higher-than-expected rise in U.S. core consumer inflation.
U.S. core consumer inflation for May was the largest increase in nearly three years and was lifted by steep rises in motor vehicle and apparel prices. [ID:nN15274697]
Canadian manufacturers saw sales slip 1.3 percent in April, as expected, reversing much of March's gains as the Japan earthquake cut off supplies to the auto industry. [ID:nN15132944]
"Today's weak print provides a cautious reminder that the pace of economic growth is slowing in Canada," said Mazen Issa, a macro strategist at TD Securities in a research note.
At 8:44 a.m. (1244 GMT), the currency CAD=D4 stood at C$0.9714 to the U.S. dollar, or $1.0294, down from Tuesday's North American finish of C$0.9689 to the U.S. dollar, or $1.0321.
"We really held in a pretty tight range most of last week," said Darcy Browne, Managing Director, Capital Markets Trading, CIBC, adding that a lot of the money is currently on the sidelines.
"We're exposed to the risk-on/risk-off scenarios that's being presented by either the equity markets or the commodity markets. There's still a lot of uncertainty."
Browne expects the currency to continue trading around its recent range, between C$0.9650 and C$0.9720.
Bank of Canada Governor Mark Carney is speaking in Vancouver later this afternoon about the country's housing market, with investors looking for comments on the impact of low Canadian interest rates on household borrowing. His comments are expected to be biased on the hawkish side, which could support the Canadian dollar later today.
Any comments on the Canadian dollar and whether the Bank of Canada believes it is too strong will also be parsed.
"As much as they don't want the Canadian dollar down here, I think they realize there's not much they can do about it. It's more of a global flow aspect to what's going on with the Canadian dollar. The drivers are not really controlled domestically," said Browne.
Canadian bond prices were mostly firmer across the curve as investors bought back into a cheapened and less risky market. [US/]
The interest rate-sensitive two-year bond CA2YT=RR was flat, yielding 1.512 percent, while the 10-year bond CA10YT=RR gained 13 Canadian cents to yield 3.053 percent.
(Editing by Chizu Nomiyama)
Our Standards: The Thomson Reuters Trust Principles.
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CANADA FX DEBT-C$ dives on Japan, then regains altitude
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CANADA FX DEBT-C$ dives on Japan, then regains altitude
By 0 Min Read
* C$ pares losses to $$1.0163
* Some say Japan crisis may drive C$ back below parity
* Bond prices soar on safety bid
* Japan braces for potential radiation catastrophe (Adds details, updates prices)
By Ka Yan Ng
TORONTO, March 15 (Reuters) - The Canadian dollar fell hard against the U.S. dollar on Tuesday on fears of nuclear catastrophe in Japan, but then regained a fair bit of ground, helped by a rebound in equity markets on renewed confidence in the U.S. economy.
The currency dived more than 2-1/2 cents from Monday's close to its lowest level in more than four weeks. By session's end, however, it had regained more than a penny of that.
The early move was dramatic and volumes were strong, mirroring aversion to risk that also drove world stock markets sharply lower and pushed down the price of oil -- usually a leading factor in the Canadian dollar's direction. [MKTS/GLOB] [O/R] ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ For a graphic on the link between the Canadian dollar and commodity prices, see: r.reuters.com/hyp58r ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Equities pared losses after the U.S. Federal Reserve maintained its ultra-loose monetary policy and said the economy was gaining traction. [ID:nnN15230117]
That added to figures that showed manufacturing in New York state rose to a nine-month high in March and homebuilder sentiment ticked up to its highest level since May 2010. [ID:nN15228136]
"Financial markets are shifting their focus back to stronger growth prospects and recognizing the influence of Japan on a global economy is still fairly minor," said David Tulk, chief macro strategist at TD Securities.
The Canadian dollar dropped early in the day as the Japanese government raced to avert a radiation catastrophe and concern intensified about the impact of the disastrous events in the world's third-largest economy. [ID:nL3E7EF3II]
The Canadian dollar fell as low as C$0.9974 to the U.S. dollar, or $1.0026, its weakest point since Feb. 11, plunging out of the range between C$0.97 and C$0.98 that it had been locked in for most of the past two weeks.
It finished the day at C$0.9840 to the U.S. dollar, or $1.0163, still down more than a penny from Monday's close of C$0.9726 to the U.S. dollar, or $1.0282.
"Going forward I think this crisis too will pass, the market is trying to grapple for information and see the extent of the contagion and just how bad it's going to be," said Firas Askari, head of foreign exchange trading at BMO Capital Markets.
Some currency watchers said Japan's earthquake and unfolding radiation disaster will likely drive Canada's currency below parity with the U.S. dollar in the near term, for the first time since Feb. 1, as investors dump assets tied most closely to global economic growth. [ID:nN15236117]
But Tulk said this was unlikely.
"We certainly saw a run early this morning and that really was the peak point of capitulation in the market," he said. "As long as there's not more bad news on the nuclear front in Japan, I think it's hard-pressed to get the flight to quality into the U.S. dollar that comes at the expense of the Canadian dollar."
BONDS ADVANCE
Bond prices were higher but gave up some ground by session's end in a still-uncertain trading environment, and as equity markets cut losses shortly after the U.S. central bank held rates steady.
The two-year Canadian government bond CA2YT=RR was up 9 Canadian cents to yield 1.630 percent, while the 10-year bond CA10YT=RR advanced 20 Canadian cents to yield 3.199 percent. Canadian bonds had a mixed performance against their U.S. counterparts.
Earlier, Canadian data that showed that productivity rose more last year than in any year since 2005 was overshadowed by the Japan news. [ID:nN15227998] (Additional reporting by Claire Sibonney; editing by Peter Galloway)
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CANADA FX DEBT-C$ slips on data, bonds retain safety bid
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CANADA FX DEBT-C$ slips on data, bonds retain safety bid
By Reuters Staff0 Min Read
* C$ falls to $1.0146
* Bonds maintain safety bid
* Canada factory sales leap, U.S. housing starts dive
TORONTO, March 16 (Reuters) - The Canadian dollar was slightly lower against the U.S. currency on Wednesday morning as Japan's nuclear crisis and clashes in Bahrain were weighed against a mixed bag of data.
The currency, an outperformer overnight after a volatile session on Tuesday, eked out a brief gain after Canadian manufacturing sales data showed a much greater-than-expected 4.5 percent jump in January from December.
The increase dwarfed analysts' predictions of a 1.0 percent rise. Sales in January hit C$47.7 billion, the highest level since October 2008. It was also a bright spot following a spate of soft Canadian data that has helped scale back expectations of any interest rate hikes before midyear. [ID:nN16104517] ECONCA BOCWATCH
But figures on Wednesday morning also showed U.S. housing starts dived 22.5 percent in February, the largest monthly fall in 27 years, while U.S. producer prices surged in February and pointed to inflationary pressures, which could affect the outlook for U.S. interest rate hikes.
"Everything is shifting now after we got very weak data from the U.S. in terms of housing starts, well below consensus, well below historical averages. It just highlights the ongoing themes for the U.S. dollar," said Camilla Sutton, chief currency strategist, at Scotia Capital.
At 9:33 a.m. (1333 GMT), the Canadian dollar CAD=D4 was at C$0.9856 to the U.S. dollar, or $1.0146, down from Tuesday's close of C$0.9840 to the U.S. dollar, or $1.0163.
Sutton said recent congestion in the C$0.9770 area would represent U.S. dollar support, while the 50-day moving average of C$0.9866 marks the initial place for U.S. dollar resistance.
Trouble in Bahrain and concerns about euro zone debt weighed on risk sentiment, but sent oil prices higher and gave minor support to the commodity-linked Canadian dollar.
Developments in Japan's nuclear crisis were being closely watched and considered an ongoing risk, but analysts were increasingly acknowledging that the impact on global growth would probably be relatively limited.
Government bond prices rose on doubts over the strength of the economic recovery, and as equity markets were under pressure.
The two-year Canadian government bond CA2YT=RR was up 8 Canadian cents to yield 1.588 percent, while the 10-year bond CA10YT=RR advanced 50 Canadian cents to yield 3.141 percent. (Reporting by Ka Yan Ng; editing by Peter Galloway)
Our Standards: The Thomson Reuters Trust Principles.
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CANADA FX DEBT-C$ hits 3-week high on renewed risk appetite
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CANADA FX DEBT-C$ hits 3-week high on renewed risk appetite
By Claire Sibonney0 Min Read
* C$ higher at 95.83 U.S. cents
* U.S. data, commodities encourage risk-taking
* Bonds track U.S. Treasuries up on inflation outlook (Updates to North American close, adds details, quotes)
TORONTO, Feb 16 (Reuters) - The Canadian dollar jumped to its highest level in more than three weeks against its U.S. counterpart on Tuesday as confidence in the global economy, as well as rising commodity prices, helped fuel appetite for risk.
Oil jumped 4 percent to above $77 a barrel, responding to a weaker greenback, stronger equities, and talk of sanctions against major oil producer Iran, while gold prices also hit a two-week high. [O/R] [GOL/]
On the data front, a New York state manufacturing gauge hit its highest level since October this month, while sentiment among home builders rose more than expected, signaling continued improvement in the U.S. economy. [ID:nN16372747]
"As soon as you get this risk aversion start to wane then Canada will benefit," said Aron Gampel, senior economist at Scotiabank.
"On a comparative basis, our economy is as strong if not stronger than the U.S. Our fiscal situation is in much better shape. Household balance sheets are certainly better than they are in the U.S. and I think our diversified economy benefits as the commodity price rise continues."
As well, mounting pressure on Greece to reduce its budget deficit boosted investors' appetite for risk, stemming flows into the safe-haven U.S. dollar.
European ministers told Greece it may need to take further steps to bring its swollen debt load under control and calm financial markets. The warning followed wage cuts in Athens that sparked another strike. [ID:nLDE61F0XT]
"As we've been getting more news out of Europe about how the problems in Greece may be addressed, this has led to a reversal of the flight-to-safety trends," said Craig Alexander, deputy chief economist at Toronto-Dominion Bank.
Investors will also look ahead to the remainder of the week for guidance from key North American indicators such retail sales, inflation figures, housing starts and industrial production.
The Canadian dollar closed at C$1.0435 to the U.S. dollar, or 95.83 U.S. cents, up from Friday's close of C$1.0517 to the U.S. dollar, or 95.08 U.S. cents. During the day, the Canadian currency hit C$1.0410, or 96.06 U.S. cents, its highest level since Jan. 20.
BONDS DEFY RISK LOGIC
Despite a surge in world stock markets on Tuesday, Canadian bond prices were mostly higher, mirroring U.S. Treasuries which edged up after the president of the Federal Reserve Bank of Minneapolis said inflation would remain relatively tame.
"But I think that as we move forward, if the stock market is pointing to the view that the economies are on an upward bias, then one would think that bond yields would trend higher, not lower," Gampel said.
"Something's got to give here. (Stocks and bonds) may be moving in the same direction today but they may not tomorrow."
The two-year bond CA2YT=RR was up 5 Canadian cents at C$100.365 to yield 1.317 percent, while the 10-year bond CA10YT=RR added 13 Canadian cents to C$102.400 to yield 3.445 percent. (Reporting by Claire Sibonney; Editing by Peter Galloway)
Our Standards: The Thomson Reuters Trust Principles.
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CANADA FX DEBT-C$ hits six-week high as world stocks climb
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CANADA FX DEBT-C$ hits six-week high as world stocks climb
By Jennifer Kwan0 Min Read
* C$ climbs as high as 93.81 U.S. cents
* Touches highest level since early August
* Bonds flat to higher, follow U.S. Treasuries
TORONTO, Sept 16 (Reuters) - The Canadian dollar touched a six-week high against the U.S. dollar on Wednesday, as the greenback hit a one-year low against a basket of currencies and higher global stocks caused investors to flock to assets seen as riskier.
Events and data this week have helped to boost investor faith about the pace of economic recovery, lighting a fire under world stocks and weakening the U.S. dollar. [FRX/] [MKTS/GLOB]
The Canadian unit raced up to C$1.0660 to the U.S. dollar, or 93.81 U.S. cents, in the overnight session to touch its highest level since Aug. 4.
"U.S. dollar weakness is a huge undercurrent to this trend," said Eric Lascelles, chief economics and rates strategist, TD Securities.
At 8:08 a.m. (1208 GMT), the Canadian dollar was at C$1.0695 to the U.S. dollar, or 93.50 U.S. cents, up from Tuesday's close at C$1.0714 to the U.S. dollar, or 93.34 U.S. cents.
The move higher extended gains in the previous session on robust U.S. retail sales and manufacturing data and comments by U.S. Federal Reserve Chairman Ben Bernanke.
Bernanke said the recession likely has ended but that recovery will be moderate at best. The comments also helped to support the desire by investors to take on more risk.
"The simple fact that Bernanke said the recession is likely over is very much a statement that favours the risk-loving trade and as a result the safe-haven bid for the U.S. dollar has been declining," said Lascelles.
The Canadian currency may also be benefiting from comments by the Bloc Quebecois on Tuesday, which suggested Canada's minority Conservative government will survive a budget vote in Parliament this week.
"That has taken some of the speculative money that would've sat on the sidelines and put it back into the Canadian dollar," said Firas Askari, head of foreign exchange trading at BMO Capital Markets.
Oil prices CLc1, a key Canadian export, were weak on Wednesday, while gold prices soared above $1,000 an ounce. [O/R] [MET/]
The Canadian currency is often swayed by the direction of stock markets and commodity prices, each seen as a yardstick of appetite for risk.
BONDS STEADY
Canadian bond prices were flat to slightly higher, following the big U.S. Treasury market where prices were boosted by Bernanke's comments, but trade was cautious ahead of key U.S. inflation data. [ID:nLG211920]
The two-year bond CA2YT=RR was flat, up 2 Canadian cents to C$99.55 to yield 1.234 percent, while the 10-year bond CA10YT=RR rose 23 Canadian cents to C$103.40 to yield 3.36 percent. The 30-year bond CA30YT=RR rose 25 Canadian cents to C$118.85 to yield 3.882 percent. (Editing by Jeffrey Hodgson)
Our Standards: The Thomson Reuters Trust Principles.
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CANADA FX DEBT-C$ firms on Greece speculation, trade data
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CANADA FX DEBT-C$ firms on Greece speculation, trade data
By Reuters Staff0 Min Read
* C$ rises to C$0.9779, or $1.0226
* Bond prices lower across curve
By Solarina Ho
TORONTO, June 17 (Reuters) - The Canadian dollar firmed against a broadly weaker U.S. dollar on Friday, benefiting from a recovery in the euro on speculation that a new bailout package for Greece could be on the horizon and as Canada's wholesale trade data came in a touch better than expected.
April's data, key in assessing monthly economic growth, saw wholesale trade dip 0.1 percent on a sharp drop in demand for agricultural supplies and following a revised 0.3 percent gain in March, Statistics Canada said. [ID:nN17271262]
Overseas, German Chancellor Angela Merkel met with French President Nicholas Sarkozy on Friday and afterward they told a news conference a solution had been agreed in line with the so-called "Vienna Initiative." [ID:nB4E7GN04A] [ID:nLDE75G0UT]
Analysts said the comments were nothing new, but European shares turned positive and Greek bond yields and credit default swaps fell as risk appetite improved across asset classes.
"We've kind of been trading the headlines over the course of the past couple of days. I think the markets are suffering from nervous exhaustion at the moment and just don't really know where to turn," said Shaun Osborne, chief currency strategist at TD Securities.
At 8:58 a.m. (1258 GMT), the currency CAD=D4 stood at C$0.9792 to the U.S. dollar, or $1.0212, firming from Thursday's North American finish of C$0.9832 to the U.S. dollar, or $1.0171.
"We're still really in a broad range here. Probably between C$0.9700 and C$0.9900. I still think the underlying trend is still a bit more towards Canadian dollar softness," said Osborne.
The currency recovered modestly after a big sell-off earlier in the week on worries about the U.S.'s sputtering economic recovery and Greece's debt load.
A string of lackluster data out of the United States, Canada's biggest trading partner, has weighed on the country's currency, while Greece's woes have been a key catalyst in spurring a flight to safety by investors.
"The underlying issues for Canada are probably still that risk assets are not performing that well. The Canadian dollar is still a barometer for risk sentiment. I think the tone of the U.S. numbers is still quite soft and soft numbers in the U.S. typically translate into weaker Canadian dollar performance overall," Osborne added.
Canadian bond prices were lower across as investors dipped their toes back into riskier assets. [US/]
The two-year bond CA2YT=RR was down 4 Canadian cents to yield 1.507 percent, while the 10-year bond CA10YT=RR fell 40 Canadian cents to yield 2.964 percent. (Editing by Padraic Cassidy)
Our Standards: The Thomson Reuters Trust Principles.
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CANADA FX DEBT-C$ edges down, technical levels seen tested
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CANADA FX DEBT-C$ edges down, technical levels seen tested
By 0 Min Read
* C$ edges down to C$0.9751 to the U.S. dollar, or $1.0255
* Key technical range eyed at C$0.9770-C$0.9800
* Bond prices little changed
By Ka Yan Ng
TORONTO, May 17 (Reuters) - Canada's dollar edged lower against the U.S. currency on Tuesday morning, eyeing another run at a key technical level that would retest its weakest in more than seven weeks.
The Canadian unit slipped as low as C$0.9771 against the U.S. currency in the previous session, its lowest since March 29, nearing a major technical area between C$0.9770-C$0.9800.
"That's an important range of levels," said Jack Spitz, managing director of foreign exchange at National Bank Financial. If broken, the currency would likely move into the C$0.98 area and weaken further against the U.S. currency.
"The market took a look at it yesterday and rejected it."
At 8:10 a.m. (1210 GMT), the Canadian dollar CAD=D4 was at C$0.9751 to the U.S. dollar, or $1.0255, down slightly from the North American session at C$0.9742 to the U.S. dollar, or $1.0265.
The currency was seen taking its cue from the euro, which pulled away from a seven-week low against the greenback, but remained vulnerable on the downside as investors looked at opportunities to trim bullish bets while uncertainty over Greek debt lingers. [ID:nLDE74G184] [FRX/]
"What we're seeing is Canada taking its cue...from global macro events and data. The euro itself continues to be vulnerable," said Spitz.
"Look at $1.40 in euro as a motivator for dollar/Canada price action."
Canadian securities transactions figures for March are seen having little impact on the currency on Tuesday. Instead, traders are looking ahead to two big reports -- inflation for the month of April and retail sales for March -- coming at the end of the week.
Canadian government bonds were little changed, mirroring U.S. Treasuries. Canada's two-year bond CA2YT=RR was up 1 Canadian cent to yield 1.662 percent, while the 10-year bond CA10YT=RR edged up 4 Canadian cents to yield 3.180 percent.
(Reporting by Ka Yan Ng, Editing by Chizu Nomiyama)
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