* C$ falls to C$0.9924 vs US$, or $1.0076
* China, euro zone data weigh
* Bond prices lower across the curve
By Jon Cook
TORONTO, March 5 The Canadian dollar
weakened against its U.S. counterpart on Monday as commodities
fell after data showed China cut its growth target and Europe's
private sector slowed last month, reigniting concerns about the
strength of the global economy.
Riskier assets like stocks were hit after Asian powerhouse
China lowered its growth target to 7.5 percent, while euro zone
surveys of purchasing managers fell from initial estimates,
driving the euro to a two-week low against the dollar.
Oil slipped to around $123 per barrel on Monday after the
China data and a boost in Iraqi production.
"The Canadian dollar did weaken off but it's holding in
fairly well," said Blake Jespersen, managing director of foreign
exchange sales at BMO Harris.
"China did downgrade their growth forecast, but 7.5 percent
is still pretty good and it assuages some fears of a hard
landing that they didn't downgrade any more than that."
At 8:50 a.m. (1350 GMT), the Canadian dollar stood
at C$0.9924 versus the U.S. dollar, or $1.0076, down from
Friday's North American close at C$0.9886 versus the U.S.
dollar, or $1.0115. It touched a session low at C$0.9960.
Last week the Canadian dollar gained about 1 percent against
the greenback, mostly from improved risk sentiment after a huge
cash injection by the European Central Bank to stabilize the
euro zone's financial problems, along with solid U.S. labor
market data and a generally elevated oil prices.
On Monday, nervousness over whether Greece will complete a
bond exchange with private creditors by March 8, to secure a 130
billion euro ($172 billion) bailout deal and avoid a messy debt
default, also undermined demand for riskier assets.
The Greek bond offering will be held the same day Bank of
Canada Governor Mark Carney makes his next interest rate
"Having those two big events on Thursday will create a bit
of caution in the markets and you may not see much of a range
for the Canadian dollar over the next three days," said
He said the Canadian currency should hover between C$0.9850
on the high end and just below parity with the U.S. at C$1.0020.
Sluggish domestic growth and uncertainty about the global
economy will likely keep the Bank of Canada from raising rates
until the second quarter of 2013, according to a Reuters survey.
Canadian bond prices were lower across the curve, with the
two-year bond down a Canadian cent to yield 1.108
percent. The 10-year bond fell 14 Canadian cents to
yield 1.975 percent.