CANADA FX DEBT-C$ softens after retail sales, cracks C$1.33

Published 2015-09-23, 09:19 a/m
CANADA FX DEBT-C$ softens after retail sales, cracks C$1.33
LCO
-
CL
-
CA2YT=RR
-
CA10YT=RR
-

* Canadian dollar at C$1.3313 or 75.11 U.S. cents
* Bond prices mixed across the maturity curve

TORONTO, Sept 23 (Reuters) - The Canadian dollar retreated
against its U.S. counterpart on Wednesday, following domestic
retail sales figures for July that came in slightly below
expectations.
Canadian retail sales rose for the third month in a row in
July, up 0.5 percent, fueled by new car and clothing sales.
The rise was in line with economists polled by Reuters, but
sales were flat and below expectations when automotive figures
were excluded. Volumes were also weaker than the headline, while
figures from the previous month were revised
lower.
Overseas, the latest data out of China showed the country's
manufacturing sector had its biggest contraction since the
global financial crisis, intensifying concerns that a slowdown
in world's second-largest economy could spread. MKTS/GLOB

* At 9:09 a.m. EDT (1309 GMT), the Canadian dollar CAD=D4
was trading at C$1.3313 to the greenback, or 75.11 U.S. cents,
softer than before the data's release and the Bank of Canada's
official close of C$1.3258, or 75.43 U.S. cents on Tuesday.
* The currency, which firmed to C$1.3233 earlier in the
session, broke through C$1.33 to weaken to C$1.3320 following
the data, within striking distance of multi-year lows.
* Brent crude oil rose towards $50 a barrel on Wednesday as
a drawdown in U.S. crude oil stocks outweighed the negative
impact of weak economic manufacturing data from China. U.S.
crude CLc1 prices were unchanged at $46.36, while Brent crude
LCOc1 added 0.35 percent to $49.25. O/R
* The Canadian dollar was mostly stronger against other key
currency counterparts.
* Canadian government bond prices were mixed across the
maturity curve, with the two-year CA2YT=RR price down 2
Canadian cents to yield 0.508 percent and the benchmark 10-year
CA10YT=RR rising 8 Canadian cents to yield 1.471 percent.
* The Canada-U.S. two-year bond spread was -18.7 basis
points, while the 10-year spread was -67.2 basis points.

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