Reuters: US Dollar Report: CANADA FX DEBT-C$ weakens in broad US$ rally as factory sales slip

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$ weakens in broad US$ rally as factory sales slip May 15th 2013, 13:24 Wed May 15, 2013 9:24am EDT * C$ at C$1.0195 vs US$, or 98.09 U.S. cents * Domestic factory prices slip on lower prices for energy products * Euro zone economy contracts; U.S. economic recovery on track By Alastair Sharp TORONTO, May 15 (Reuters) - The Canadian dollar weakened against a surging U.S. dollar in Wednesday morning trade, hurt by slower domestic factory activity and data showing the euro zone economy contracted more than expected in the first quarter. Investors took a more cautious look at the global economy after the European data, which saw France slide back into recession, while a decent showing from the U.S. economy has helped its currency make solid gains against a range of rivals. Canadian manufacturing sales sagged in March following an unexpected surge in February, reverting to a trend of lackluster performance more in line with modest economic growth, according to Statistics Canada data. The contraction was driven by lower prices for energy products and a slump in fertilizer sales, and bucked expectations for a modest expansion. The loonie, as Canada's currency is colloquially known, was trading at C$1.0195 to the greenback, or 98.09 U.S. cents, at 9:11 a.m. (1311 GMT), compared with C$1.0170, or 98.33 U.S. cents, at Tuesday's North American close. "To be honest, I'd characterize the move today more as dollar strength than CAD weakness," said Adam Cole, the global head of currency strategy at Royal Bank of Canada. "It's a parallel move against most of the majors, rather than being anything specific to CAD." "There isn't really much of an independent Canadian story ... it's just caught in the wash of what the bigger dollar is doing." A run of solid U.S. economic data has raised expectations the Federal Reserve may wind down its asset-buying effort by the end of the year, boosting the greenback. Against a basket of major currencies, the dollar has jumped more than 2 percent in the last week, to a peak not seen since before European Central Bank President Mario Draghi pledged to do "whatever it takes" to save the euro. Prices for Canadian government bonds rose across the curve, with the two-year bond up 1 Canadian cent to yield 1.032 percent and the benchmark 10-year bond rising 29 Canadian cents to yield 1.925 percent. Link this Share this Digg this Email Reprints

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