CANADA FX DEBT-C$ weakens slightly ahead of Canada GDP

Thu Jan 31, 2013 8:14am EST

* C$ at C$1.0020 to US$, or 99.80 U.S. cents
    * Canada GDP data for November due out at 8:30 a.m.
    * Attention will then turn to U.S jobs data out on Friday

    By Alastair Sharp
    TORONTO, Jan 31 (Reuters) - The Canadian dollar weakened
slightly against its U.S. counterpart on Thursday just ahead of
Canadian gross domestic product data and as traders eye a key
jobs report out of the United States.
    At 8:02 a.m. (1302 GMT) the Canadian dollar was
trading at C$1.0020 to the greenback, or 99.80 U.S. cents,
compared with C$1.0015, or 99.85 U.S. cents, at Wednesday's
North American close.
    November GDP data for Canada is due out at 8:30 am, with the
consensus in a Reuters poll pointing to annualized growth of 0.2
percent. 
    A reading above 0.4 percent could push the currency to
C$0.9991 to the greenback while a flat or negative number could
weaken the Canadian dollar to around C$1.0060, according to
Jeremy Stretch, head of foreign exchange strategy at CIBC World
Markets.
    After that, attention will quickly turn to U.S. employment
data due out on Friday. 
    "We're left beholden to labor market data in particular, and
that's why the number tomorrow is going to be so elevated in
terms of its potential market reaction," Stretch said. "That's
going to be the driving force for sentiment vis a vis North
America in general, and to an extent the global backdrop as
well."
    The U.S. Federal Reserve kept its bond-buying plan in place
at the end of a two-day meeting on Wednesday, saying economic
growth had stalled. Gross domestic product data released earlier
in the day showed that the U.S. economy, Canada's main export
market, shrank in the fourth quarter of 2012. 
    The price of a two-year Canadian bond was up 1
Canadian cent to yield 1.161 percent, while the benchmark
10-year bond rose 12 Canadian cents to yield 1.983
percent.
FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.