CANADA FX DEBT-C$ weakens against greenback after U.S. data, firms against yen

Published 2016-02-12, 09:26 a/m
© Reuters.  CANADA FX DEBT-C$ weakens against greenback after U.S. data, firms against yen
USD/CAD
-
CL
-
CA2YT=RR
-
CA10YT=RR
-

* Canadian dollar at C$1.3948 or 71.69 U.S. cents
* Bond prices lower across the maturity curve

TORONTO, Feb 12 (Reuters) - The Canadian dollar weakened
against it U.S. counterpart on Friday after a solid gain in U.S.
core retail sales supported the greenback, but gained ground
against safe-haven currencies as oil prices and stocks
rebounded.
Supportive of the risk-sensitive Canadian dollar, relative
calm returned to world markets after a week of turmoil that
triggered a dash to safe-haven assets and
currencies.
Oil prices jumped on prospects of a coordinated production
cut, sparked by comments from the energy minister of OPEC member
United Arab Emirates.
U.S. crude CLc1 prices were up 6.26 percent to $27.85 a
barrel.
At 9:08 a.m. EST (1408 GMT), the Canadian dollar CAD=D4
was trading at C$1.3948 to the greenback, or 71.69 U.S. cents,
weaker than the Bank of Canada's official close of C$1.3921, or
71.83 U.S. cents.
The currency's strongest level of the session was C$1.3884,
while its weakest was C$1.3954.
Against the safe-haven Japanese yen, the Canadian dollar
firmed to 80.82 after having touched on Thursday its lowest
since Jan. 20 at 79.27 yen.
U.S. consumer spending appeared to regain momentum in
January as households ramped up purchases of a variety of goods,
in a hopeful sign that economic growth was picking up after
slowing to a crawl at the end of 2015.
Canadian government bond prices were lower across the
maturity curve, with the two-year CA2YT=RR price down 7
Canadian cents to yield 0.412 percent and the benchmark 10-year
CA10YT=RR falling 51 Canadian cents to yield 1.077 percent.
On Thursday, the 10-year yield touched a record low of 0.921
percent on the flight to safety.
The curve steepened in sympathy with U.S. Treasuries. The
spread between the 2-year and 10-year yields widened 2.1 basis
points to 66.5 basis points as recent outperformance for
longer-dated maturities was pared.

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