Reuters: US Dollar Report: CANADA FX DEBT-C$ little changed as soft data offset by ECB hope

Reuters: US Dollar Report Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

CANADA FX DEBT-C$ little changed as soft data offset by ECB hope Aug 8th 2012, 12:30 Tweet Share this Email Print Wed Aug 8, 2012 8:37am EDT * C$ at C$0.9976 vs US$, or $1.0024 * Weak German data offset by ECB stimulus hopes * Bond prices higher across the curve By Jon Cook TORONTO, Aug 8 (Reuters) - (Refiles to correct typographic error in third paragraph) The Canadian dollar was little changed against its U.S. counterpart on Wednesday, as weak German data was offset by expectations the European Central Bank will ultimately step in to boost the euro zone's flagging economy. German imports fell sharply for the second time in three months in June and exports also dropped, data showed on Wednesday, adding to signs the single currency bloc's crisis is beginning to hurt Europe's largest economy. But expectations the ECB will step in and buy bonds to ease pressure on the debt-riddled euro zone economies of Spain and Italy diminished the impact of the data on the Canadian dollar. "Markets are somewhat mixed to start the morning," said Blake Jespersen, managing director, foreign exchange sales at BMO Capital Markets. "It's a very quiet summer market." On Tuesday, Canada's dollar soared to C$0.9962 against the greenback, or $1.0038, its loftiest level since May 11. At 8:10 a.m. EDT (1210 GMT), Canada's dollar was at C$0.9976 versus the U.S. currency, or $1.0024, virtually unchanged from Tuesday's close at C$0.9975 against the greenback, or $1.0025. The Canadian dollar was up against other growth-related currencies such as the euro and the Australian dollar . However, it slipped against sterling after Bank of England Governor Mervyn King appeared cautious about future interest rate cuts, surprising some investors. Earlier, the central bank slashed inflation and growth forecasts in its Quarterly Inflation Report as the euro zone crisis continues to take its toll. Jespersen said the currency would likely stay within a tight range between C$0.9950, or $1.0050, and parity with the greenback. "Parity really becomes the resistance now on the Canadian dollar," he added. "We failed to break above it overnight." Canadian bond prices were higher across the board. The two-year bond rose 3 Canadian cents to yield 1.156 percent, and the benchmark 10-year bond rose 9 Canadian cents to yield 1.831 percent. Tweet this Link this Share this Digg this Email Reprints Comments (0) Be the first to comment on reuters.com. Add yours using the box above.

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions