Monday November 2, 2009 - 21:45:31 GMT
Share This Story
Reuters - www.reuters.com
Forex Market News - CANADA FX DEBT-C$ rebounds from 1-month low; ends higher
* C$ recovers after hitting 1-month low
* Employment data, Fed in focus this week
* Bond prices end lower across curve
By Frank Pingue
TORONTO, Nov 2 (Reuters) - Canada's currency bounced off a
one-month low to rise against a weaker U.S. dollar on Monday,
helped by higher commodity prices, but the move was limited
ahead of key Canadian jobs data due later this week.
The price of oil, a key Canadian export whose price often
influences the currency, was given a boost as strong U.S.
manufacturing data helped stoke optimism for a turnaround in
fuel demand. [O/R]
That helped lift the Canadian dollar as high as C$1.0715 to
the U.S. dollar, or 93.33 U.S. cents, which was comfortably off
its overnight low of C$1.0871 to the U.S. dollar, or 91.99 U.S.
cents, its lowest level since Oct. 2.
The rebound was aided by a slide in the U.S. dollar as its
safe-haven appeal was crimped by the latest economic data.
But the Canadian dollar trimmed a lot of its gain by the
end of the session, which some experts said had light flows
because it was the first day of the fiscal year for Canadian
The Canadian data calendar is light until the employment
figures come out on Friday, leaving the currency vulnerable to
"The next couple of days should be dictated by the moves in
the U.S. dollar and U.S. data," said David Bradley, director of
foreign exchange trading at Scotia Capital.
The Canadian economy is expected to have created 10,000
jobs in October, while the jobless rate is seen rising to 8.5
percent from 8.4 percent in September.
Canadian employers hired six times more workers than
expected in September, knocking down the unemployment rate for
the first time since July 2008. [ID:nN09253705]
The Canadian dollar closed at C$1.0778 to the U.S. dollar,
or 92.78 U.S. cents, up from C$1.0819 to the U.S. dollar, or
92.43 U.S. cents, at Friday's close.
This week also features policy announcements from several
major central banks, including the U.S. Federal Reserve and
European Central Bank, as well as a G20 finance ministers'
meeting. [M/DIARY] At issue in all cases is whether
governments will continue to take special measures to keep
financial markets liquid.
BOND PRICES SLIP
Canadian bond prices ended down across the curve alongside
a slide in the bigger U.S. Treasury market as demand for more
secure government debt faded after U.S. economic data came in
stronger than expected.
The two-year bond CA2YT=RR fell 5 Canadian cents to
C$99.68 to yield 1.407 percent, while the 10-year bond
CA10YT=RR lost 15 Canadian cents to C$102.50 to yield 3.440
(Editing by Peter Galloway)
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."