CANADA FX DEBT-C$ slides half a cent on 'dismal' manufacturing data

Fri Feb 15, 2013 9:47am EST

* C$ at $1.0065 vs US$, or 99.35 U.S. cents
    * C$ weakens against most currencies, except yen
    * Manufacturing sales fall the most in 3-1/2 years in Dec
    * Bond prices rise modestly across curve

    By Solarina Ho
    TORONTO, Feb 15 (Reuters) - The Canadian dollar weakened
more than half a cent against the greenback on Friday following
much-weaker-than-expected domestic manufacturing data that
highlighted the negative impact of the strong currency on
exports.
    Manufacturing sales recorded the biggest decline in about
3-1/2 years in December, due to weaker auto production and lower
sales across most other industries, government data showed.
 
    "It's a pretty dismal report. Not a nice way to end a year,"
said Sal Guatieri, senior economist at BMO Capital Markets.
    "Very few regions are immune to the negative impact of the
high Canadian dollar. It's not surprising the currency would
weaken on such a dismal report."
    At 9:21 a.m. (1421 GMT), the Canadian dollar weakened to
C$1.0065 versus the U.S. dollar, or 99.35 U.S. cents, from
C$1.0026, or 99.74 U.S. cents just before the data was released
and Thursday's North American session close at C$1.0012, or
99.88 U.S. cents.
    Canada's dollar weakened against all other major currencies,
except the Japanese yen.
    Canadian government bonds rose moderately across the curve,
with the two-year bond rising half a Canadian cent to
yield 1.125 percent and the benchmark 10-year bond 
climbing 3 Canadian cents to yield 1.997 percent.
FILED UNDER:
A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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