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CANADA FX DEBT-C$ softens as US$ rallies on Fed outlook, GDP data

Published 2015-07-30, 09:47 a/m
© Reuters.  CANADA FX DEBT-C$ softens as US$ rallies on Fed outlook, GDP data
USD/CAD
-
CA2YT=RR
-
CA10YT=RR
-

* Canadian dollar at C$1.2993 or 76.96 U.S. cents
* Bond prices mixed across the maturity curve

TORONTO, July 30 (Reuters) - The Canadian dollar retreated
against a rallying greenback on Thursday, but was off session
lows, as markets cheered the Federal Reserve's relatively upbeat
outlook for the U.S. economy and solid U.S. economic growth
data.
Data showed accelerating U.S. growth in the second quarter
and a large upward revision of the first quarter, supporting the
view that the Federal Reserve is set to raise interest rates
this year. ID:nLNNUIEBDP
The U.S. dollar's strength offset the impact on the loonie
of a rebound in prices for crude, a major Canadian export.


* At 9:13 a.m. EDT (1313 GMT), the Canadian dollar CAD=D4
was at C$1.2993 to the greenback, or 76.96 U.S. cents, weaker
than the Bank of Canada's official close of C$1.2944, or 77.26
U.S. cents, on Wednesday.
* The loonie briefly softened to C$1.3025 against the U.S.
dollar, or 76.78 U.S. cents, after the U.S. gross domestic
product data.
* U.S. GDP expanded at a 2.3 percent annual rate in the
second quarter, a solid rebound from the first quarter, which
was revised to a 0.6 percent gain versus the previously reported
0.2 percent decline. ECONUS .
* Data from Statistics Canada showed nonfarm payroll jobs
rose by 16,500 in May, a slightly slower pace than April's
27,600 increase, with the largest gains seen in the
accommodation and construction sectors. The separate Labor Force
Survey previously released by the agency had shown the economy
added 58,900 jobs in May. Some economists say the payrolls
report may be more accurate than the widely watched labor force
survey. ID:nL1N0YR0NJ
* Canadian government bond prices were mixed across the
maturity curve, with the two-year CA2YT=RR price down 2
Canadian cents to yield 0.47 percent and the benchmark 10-year
CA10YT=RR rising 5 Canadian cents to yield 1.513 percent.
* The Canada-U.S. two-year bond spread widened to -26.1
basis points, while the 10-year spread widened to -76.7 basis
points.


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