CORRECTED (OFFICIAL)-CANADA FX DEBT-C$ strongest in a month after jobs data

Fri Dec 7, 2012 2:35pm EST

(Corrects 2nd paragraph to say jobless rate lowest since June,
not March)
    By Solarina Ho
    TORONTO, Dec 7 (Reuters) - The Canadian dollar strengthened
against the U.S. dollar for the fourth straight session on
Friday, jumping to a one-month high after both the Canadian and
U.S. economies added more jobs than expected in November.
    In Canada, government data showed 59,300 net new positions
were created last month, the most number of jobs created in
eight months. The jobless rate fell to 7.2 percent, the lowest
since June, from 7.4 percent, said Statistics Canada.
 
    "It's a solid report, from head to toe. At least upon first
glance, I don't see any major warts in the data," said Doug
Porter, deputy chief economist at BMO Capital Markets.
    "There was a decline in construction and manufacturing jobs,
but that's quibbling, given the fact that almost all the
outsized gains were in private sector and full-time jobs."
    Overnight index swaps, which trade based on expectations for
the central bank's key policy rate, showed that traders resumed
placing small bets on a rate increase in late 2013 after the
employment reports. 
    In the United States, nonfarm employment increased by
146,000 jobs last month, the Labor Department said, defying
expectations of a sharp pull back related to superstorm Sandy.
However, a drop in the jobless rate to a near-four year low as
people gave up the search for work suggested the labor market
was still tepid. 
    "It's pretty much a one direction bet today for risk assets,
and in this case for the Canadian dollar I think you're probably
going to have that general bid-tone sustained for the rest of
the day," said Mazen Issa, a strategist at TD Securities.
     At 9:34, the Canadian dollar was trading at
C$0.9880 versus the greenback, or $1.0121. This was stronger
than the C$0.9925, or $1.0076 it was trading at just before the
jobs reports were released and firmer than Thursday's North
American session finish of C$0.9911, or $1.0090.
    It had strengthened to its best level in a month, touching
C$0.9877, or $1.0125, shortly after the release of the North
American data.
    "Between this and a decent U.S. number, the dollar's taken
on a bit of strength ... I'm not convinced it's going to have
staying power for the currency, but at least probably for today
it will be supportive," said Porter.
    Canada's dollar was also outperforming all other major
currencies except the Japanese yen. It touched its strongest
level against the euro in about 2-1/2 weeks.
    Canadian bond prices fell across the curve, with the
two-year bond shedding 7 Canadian cents to yield
1.081 percent, and the benchmark 10-year bond 
falling 25 Canadian cents to yield 1.721 percent.

 (Reporting by Solarina Ho; Editing by Bernadette Baum)
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A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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