CANADA FX DEBT-Canadian dollar perks up after jobs data
* Canadian dollar rises to 93.15 U.S. cents
* Economy adds 43,000 jobs, unemployment rate dips
* Short-term bonds prices turn lower
TORONTO, Feb 5 (Reuters) - The Canadian dollar shot higher against the U.S. currency on Friday, while short-dated government bond prices turned lower, after Canadian jobs data came in almost three times expectations.
Canada's economy added a surprising 43,000 jobs in January, while the unemployment rate fell to 8.3 percent from 8.4 percent, according to Statistics Canada data on Friday. [ID:nN05253705]
Analysts surveyed by Reuters had expected the economy to add 15,000 jobs in January and the unemployment rate to edge up to 8.5 percent.
The Canadian dollar jumped to C$1.0716 to the U.S. dollar, or 93.32 U.S. cents, from C$1.0749 to the U.S. dollar, or 93.03 U.S. cents just before the report. This compared with Thursday's close at C$1.0727, or 93.22 U.S. cents, and a three-month low of C$1.0781, hit in the overnight session.
At 7:28 a.m. (1228 GMT), the Canadian dollar was at C$1.0735 to the U.S. dollar, or 93.15 U.S. cents.
The details of the report, however, were less impressive as the bulk of the monthly job gain came on the back of part-time jobs.
"We'll see if (the Canadian dollar strength) is sustained. It's not nearly as strong as the headline would suggest," said Doug Porter, deputy chief economist at BMO Capital Markets.
Market players will also zero in on the highly anticipated U.S. non-farm payrolls data at 8:30 a.m.
A Reuters poll predicted U.S. non-farm payrolls grew by 5,000 in January, after an unexpected loss of 85,000 in December. The unemployment rate is expected to edge up to 10.1 percent in January from 10 percent.
Prices at the short-end of Canadian yield curve turned lower following the jobs report, while long-dated issues trimmed gains.
The two-year bond CA2YT=RR was down 1 Canadian cent at C$100.43 to yield 1.287 percent, while the 10-year bond CA10YT=RR was up 15 Canadian cents at C$103.18 to yield 3.349 percent. (Reporting by Ka Yan Ng; Editing by Jeffrey Hodgson)
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