The Canadian dollar rose against the U.S. dollar on Monday as concerns about debt problems in the euro zone eased, helping to boost investor
demand for commodity linked currencies.
The U.S. dollar was broadly weaker, with the euro supported
by an agreement late last week by euro zone leaders on a
financial safety net for Greece. <FRX/>
"There is some relief now that there is a plan for the EU
to support some of its weaker members" said Camilla Sutton, a
currency strategist at Scotia Capital.
Commodities, which are generally priced in U.S. dollars,
benefited from the weaker greenback, and in turn helped boost
the Canadian dollar.
At 8:35 a.m. (1235 GMT), the Canadian dollar was at
C$1.0214 to the U.S. dollar, or 97.90 U.S. cents, up about 0.5
percent from Friday's finish at C$1.0267 to the U.S. dollar, or
97.40 U.S. cents.
Greece launched a highly-anticipated sovereign bond issue
on Monday to refinance its ballooning debts.
It opened its book on a seven-year benchmark euro bond with
a price guidance around mid-swaps plus 310 basis points, lead
managers said. [ID:nWLB1118]
There are no major Canadian economic data releases on
Monday, so the currency will likely be influenced by moves in
the U.S. dollar and in commodities like oil, natural gas, and
gold, which are major Canadian exports.
Oil was headed toward $81 early Monday, supported by the
weaker dollar and positive data, including higher euro zone
sentiment. [ID:nSGE62S07A] <O/R>
Gold XAU= hit its highest in more than a week, rising as
high as $1,112.65 an ounce. <GOL/>
The next major Canadian data is Wednesday, with the
seasonally adjusted gross domestic product for January.
With global equity markets on the rise, Canadian bond
prices were mostly softer, though there were some gains in the