CANADA FX DEBT-C$ modestly firmer, underpinned by recent data

Mon Feb 4, 2013 8:49am EST

* C$ at C$0.9967 vs USD, or $1.0033
    * C$ seen trading between C$0.9949 and C$0.9977
    * Bond prices higher across the curve

    By Solarina Ho
    TORONTO, Feb 4 (Reuters) - The Canadian dollar was modestly
firmer on Monday, supported by recent economic data out of the
country's largest trading partner, the United States, that
showed signs of a steady recovery.
    On Friday, data showed U.S. nonfarm payrolls grew modestly
in January, while gains in the prior two months were bigger than
initially reported. 
    "You've seen some strengthening in the Canadian dollar and
this is largely in response to generally more favourable data
over the last week," said Mazen Issa, macro strategist at TD
Securities.
    "Today it's very quiet and the data calendar empty -- at
least on the North American side until Friday, where we get a
data dump."
    Canadian employment, housing starts and trade balance are
just a few of the economic reports to be released on Friday.
 
    Issa said while some headline risk from either Europe or the
fiscal challenges in the United States could result in some move
in currencies, it was generally expected to be quiet.
    At 8:19 a.m. (1318 GMT), the Canadian dollar was
trading at C$0.9967 to the U.S. dollar, or $1.0033, marginally
stronger than its Friday finish at C$0.9973, or $1.0027.
    The currency was seen trading between C$0.9949 and C$0.9977,
according to TD Securities' daily currency outlook report.
    The price of a two-year Canadian government bond 
rose 1.5 Canadian cents to yield 1.184 percent, while the
benchmark 10-year bond added 8 Canadian cents to
yield 2.034 percent.
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