Reuters: US Dollar Report: CANADA FX DEBT-C$ strengthens ahead of U.S. election result

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CANADA FX DEBT-C$ strengthens ahead of U.S. election result Nov 6th 2012, 22:09 Tue Nov 6, 2012 5:09pm EST * C$ at C$0.9918 vs US$, or $1.0083 * Aussie dollar leads commodity currencies higher * Americans vote in U.S. presidential election on Tuesday * Greece set to vote wage, pension cuts into law Wednesday By Solarina Ho TORONTO, Nov 6 (Reuters) - The Canadian dollar finished at its strongest level in nearly two weeks on Tuesday, tracking global equities markets and other commodity currencies higher as American voters cast their ballots for the next U.S. president. Democratic President Barack Obama and Republican challenger Mitt Romney battled down to the wire on Tuesday, mounting a last-minute election day drive to get their supporters to the polls in a handful of states that will decide the winner in a neck-and-neck race for the White House. Australia's central bank kept its main interest rate steady at 3.25 percent on Tuesday, citing higher inflation at home and an improved global background, though it left the door open for stimulus measures if needed. "The (Canadian dollar) moves started slowly throughout the overnight session on the back of the rally in the Australian dollar ... The Aussie led the commodity currencies higher," said Matt Perrier, a director of foreign exchange sales at BMO Capital Markets. "The fact remains the market seems happy to buy back a little bit of risk ... we've seen a little bit of that move unwind into the equity close here. They've locked their best level." World stock markets rose on Tuesday along with oil, copper and gold prices. The U.S. presidential election kept trade subdued, however, while the euro held steady despite uncertainty over Greece's next financial aid payment. On Tuesday, hundreds of thousands of Greeks went on strike against wage and pension cuts the indebted country's parliament is expected to vote into law on Wednesday. "Markets are waiting for results from the U.S. election and waiting to see what happens in Greece with the austerity package," said David Bradley, a director of foreign exchange trading at Scotiabank. The Canadian dollar finished at C$0.9918 to the U.S. dollar, or $1.0083, stronger than Monday's North American close of C$0.9967, or $1.0033. Perrier said to watch for C$0.9885 as a support level in the near term, adding that if the Canadian dollar strengthened through C$0.9835, it could go on to edge back toward the mid-C$0.9600 level. "But to the extent that we hold above that C$0.9835 level, then we may see us start to settle back to a consolidation range here around C$0.9850 to par," Perrier said . The two-year government of Canada bond was dropped 8.5 Canadian cents to yield 1.118 percent, while the benchmark 10-year bond fell 39 Canadian cents to yield 1.805 percent. Link this Share this Digg this Email Reprints

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