CANADA FX DEBT-C$ declines ahead of U.S. jobs data

Fri Feb 1, 2013 8:15am EST

* C$ at C$0.9993 to US$, or $1.0007
    * U.S. jobs data due at 8:30 a.m. (1330 GMT
    * C$ at fresh 13-month low vs euro

    By Alastair Sharp
    TORONTO, Feb 1 (Reuters) - The Canadian dollar weakened on
Friday, ahead of a U.S. jobs report which will be closely
scrutinized for clues on the economic health of Canada's main
trading partner and for what it means for U.S. monetary policy.
    The U.S. non-farm payrolls report is expected to show modest
growth in January, supporting a view that the U.S. economy
continues to recover despite a surprise contraction in economic
growth in the final three months of 2012. 
    The employment report is central as the U.S. Federal Reserve
has tied its monetary stance to improvement in the labor market.
    Shaun Osborne, chief currency strategist at TD Securities,
said he was braced for less-than-dazzling news.
    "The trend for U.S. data releases recently has been towards
disappointment relative to expectations and we are a little bit
below consensus so we're expecting perhaps a softer number would
be a modest negative for the Canadian dollar," he said.
    At 7:52 a.m. (1252 GMT) the Canadian dollar was
trading at C$0.9993 to the greenback, or $1.0007, compared with
C$0.9973, or $1.0027, at Thursday's North American close.
    The currency hit a fresh 13-month low of C$1.3669 against
the euro, as the single currency recorded broad gains on a
positive outlook for the euro zone. 
    While the Canadian data calendar is sparse, other U.S. data
on tap includes manufacturing and construction spending, and
vehicle sales. 
    The price of a two-year Canadian government bond 
was unchanged to yield 1.163 percent, while the benchmark
10-year bond fell 19 Canadian cents to yield 2.010
percent.
FILED UNDER:
A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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