* C$ ends lower at C$0.9880 vs US$ or $1.0121
* U.S. stocks slump as Bernanke speech disappoints
* Strong Canadian economic data overshadowed
* Bond prices rise across curve
(Updates to close, adds comments, details)
By Andrea Hopkins
TORONTO, Sept 8 The Canadian dollar ended the
session weaker against its U.S. counterpart on Thursday as
investors sought safety after a speech by Federal Reserve chief
Ben Bernanke lacked details on plans to spur economic growth.
Wall Street stocks fell on the Bernanke speech and the euro
slipped on fears the euro zone debt crisis is worsening with
Greece failing to meet fiscal targets. [MKTS/GLOB]
Central bank news in the United States and Europe
overshadowed Canadian data that showed a narrowing trade
deficit and strong housing market, positive signs for the
economy after a second-quarter economic slump. [ID:nN1E7870S0]
"It really is about the general dollar tone and risk
assets, and we see equity markets off again today and typically
there is a very strong and sustained positive correlation
between the Canadian dollar and risk assets," said Shaun
Osborne, chief currency strategist at TD Securities.
The Canadian dollar CAD=D4 ended the North American
session at C$0.9880 to the U.S. dollar, or $1.0121, down from
Wednesday's North American close of C$0.9855 to the U.S.
dollar, or $1.0147.
Osborne said the currency could have a volatile ride in the
weeks ahead as it tracks the U.S. equity market through what is
a traditionally bad month.
"September generally is not a positive month for risk
assets. Historically it is the worst performing month for S&P
500 returns, so chances are we're going to see a bumpy ride for
stocks for the next little while and that means the Canadian
dollar will likely slip back," he said.
U.S. stocks ended the day lower with Dow Jones industrial
average .DJI and Standard & Poor's 500 Index .SPX both down
more than 1 percent. The Toronto Stock Exchange's S&P/TSX
composite index .GSPTSE closed down 0.29 percent as strength
in gold-mining stocks helped cushion the fall.
Crude oil futures followed Wall Street lower in reaction to
the Bernanke speech. [O/R]
Markets were also awaiting a speech by U.S. President
Barack Obama, who was set to address Congress at 7 p.m. (2300
GMT) to lay out a jobs package worth more than $300 billion.
On Friday, traders will focus on Canadian employment data
for August, which is expected to show the economy added 25,000
jobs. ECONCA [ID:nN1E78119P]
Canadian bond prices rose across the yield curve as
investors shifted to safety.
The two-year bond CA2YT=RR was up 3.5 Canadian cents to
yield 0.890 percent, while the 10-year bond CA10YT=RR rose 46
Canadian cents to yield 2.219 percent.
(Editing by Jeffrey Hodgson)