December 1, 2011 / 1:31 PM / 6 years ago

CANADA FX-C$ firms vs US$ for 4th straight day

* C$ rises to C$1.0173 vs US$, or 98.30 U.S. cents
    * Bond prices little changed across curve
    By Claire Sibonney
    TORONTO, Dec 1 (Reuters) - The Canadian dollar firmed
against the U.S. dollar for a fourth straight day on Thursday
as a Spanish bond sale saw decent demand and a liquidity move
by major central banks raised hopes policymakers would step up
action to tackle Europe's debt crisis.
    Spain's government bond yields fell following the auction,
a day after the world's six major central banks said they would
lower the cost of existing dollar swap lines, and arrange
bilateral swaps to provide liquidity for other currencies."We've had a good week, certainly not necessarily keeping
up as well as some of the other currencies, but I think at the
end of the day Canada has done well, and I would expect maybe a
bit of consolidation today as we wait for the employment data
out of both Canada and the U.S. tomorrow," said Steve Butler,
director of foreign exchange trading at Scotia Capital.
    Continued nervousness about the state of the U.S. economy
has been weighing on Canada's currency, noted Butler.
    Investor focus has now turned to a key European meeting on
Dec. 9 to see whether euro zone policymakers will follow
through with measures to solve the crisis.
    "The market still feels that the situation in Europe is
still very tenuous ... they're making small strides but they
still haven't really addressed the fundamental fact that
there's still a mountain of debt that needs to be refinanced,
and there's still a lot of concerns about what's going to
happen, especially next year," added Butler.
    At 8:09 a.m. (1309 GMT), the Canadian dollar was at
C$1.0173 against the U.S. dollar, or 98.30 U.S. cents, up from
Wednesday's North American session close at C$1.0203 against
the U.S. dollar, or 98.01 U.S. cents.
    Butler said parity was back in sight, with Canadian-dollar
resistance now below C$1.01, and support rested near C$1.0240.
    Canadian government bond prices were little changed across
the curve. The two-year bond was up half a Canadian
cent to yield 1.006 percent, while the 10-year bond 
eased 12 Canadian cents to yield 2.165 percent.

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