Thursday June 4, 2009 - 20:13:01 GMT
Share This Story
Reuters - www.reuters.com
Forex Market News - CANADA FX DEBT-C$ bounces back from early weakness, bonds
* C$ rebounds from early weakness as oil and equities firm
* Bank of Canada holds rates steady, but warns on C$
* Makes no mention of unconventional monetary easing
* Bonds fall as equities gain
(Updates to midafternoon)
TORONTO, June 4 (Reuters) - The Canadian dollar rebounded
against the U.S. currency on Thursday as rising equity markets
and firmer oil prices outweighed Bank of Canada caution about
the currency's recent strength.
The currency fell as low as C$1.1100 to the U.S. dollar, or
90.09 U.S. cents, though still up from the session low, as
traders digested unusually strong comments from the central
bank about the currency, which surged 9.3 percent in May alone,
its biggest monthly gain since at least 1950. [ID:nN0479627]
But as the day progressed, the Canadian dollar bounced
back, aided by gains on equity markets and influenced by the
rising price of oil.
At 3:07 p.m. (1907 GMT), the Canadian unit was at C$1.0975
to the U.S. dollar, or 91.53 U.S. cents, up from C$1.1084 to
the U.S. dollar, or 90.22 U.S. cents, at Wednesday's close.
"The Bank of Canada in my mind isn't in the business of
swaying currencies or influencing them, either through verbal
tactics or through buying and selling," said Eric Lascelles,
chief economics and rates strategist at TD Securities.
"What I took from the statement was just that although a
stronger Canadian dollar may normally dampen the outlook,
enough positive things have happened to make it largely a
Canada's export-oriented economy is already in a deep
recession and a stronger currency could hurt demand for exports
and stall recovery.
Bonds were weaker across the curve amid gains in equity
markets. Stocks typically trade inversely to bonds as an
indicator of risk appetite.
(Reporting by Ka Yan Ng; editing by Janet Guttsman)
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."