Reuters: US Dollar Report: CANADA FX DEBT-C$ firms to two-week high on broad US$ weakness

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CANADA FX DEBT-C$ firms to two-week high on broad US$ weakness Apr 29th 2013, 13:58 Tweet Share this Email Print Related Topics Currencies » Bonds News » Bonds » Markets » Mon Apr 29, 2013 9:58am EDT * C$ at C$1.0148 vs US$, or 98.54 U.S. cents * U.S. data backs expectation Fed bond buying to continue * Bond prices rises across the curve By Solarina Ho TORONTO, April 29 (Reuters) - The Canadian dollar touched its strongest level against the U.S. dollar in two weeks on Monday as the greenback weakened broadly against most other currencies following U.S. data that added to expectations the Federal Reserve will maintain its current pace of stimulative bond buying. U.S. data showed consumer spending unexpectedly rose last month as the benign inflation helped household spending power. The price index for consumer spending dipped 0.1 percent. The lack of inflation pressure gives the U.S. central bank scope to maintain its very easy monetary policy stance. "It's really just broadbased U.S. dollar weakness. We're seeing almost every currency has gained ground against the U.S. dollar leading into the North American open," said Camilla Sutton, chief currency strategist at Scotiabank. "Some of that has to do with shifting expectations for how long the Fed will continue its pace of bond buying." At 9:22 a.m. (1322 GMT), the Canadian dollar was trading at C$1.0148 against the greenback, or 98.54 U.S. cents. This was stronger than Friday's North American session finish at C$1.0169, or 98.34 U.S. cents. Canada's dollar extended Friday's gains after U.S. GDP figures last week showed economic growth sped up in the first quarter, but not as much as expected. Despite the Canadian dollar's strength, it was broadly underperforming most other currencies. Against the U.S. dollar, it was expected to trade between C$1.0170 to C$1.0100 for the session, according to Sutton. The price of Canadian government debt rose across the curve, with the two-year bond up half a Canadian cent to yield 0.932 percent, while the benchmark 10-year bond rose 9 Canadian cents to yield 1.696 percent. Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.

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