CANADA FX DEBT-C$ makes slight gains, but hitting resistance

Wed Sep 11, 2013 9:38am EDT

* C$ at C$1.0342 vs US$, or 96.69 U.S. cents
    * C$ has been unable to punch through 100-day MA in last two
sessions

    By Alastair Sharp
    TORONTO, Sept 11 (Reuters) - The Canadian dollar was
marginally stronger against the U.S. currency in early trade on
Wednesday, pausing after a string of solid daily gains prompted
by last week's stronger-than-expected domestic jobs report.
    "It has had some very good gains over the course of the last
few sessions," said Jeremy Stretch, head of foreign exchange
strategy at CIBC World Markets in London, pointing to the
divergent North American job reports of last Friday as impetus
for Canadian dollar gains.
    The reports showed Canada added almost three times as many
jobs as expected and U.S. employers hired fewer workers than
expected.
    But the Canadian dollar has struggled to breach the 100-day
moving average of C$1.0334 in the past two days. It would need
to definitively break through that level to make further
progress, Stretch said.
    At 9:12 a.m. (1312 GMT) the Canadian dollar was
trading at C$1.0342 to the greenback, or 96.69 U.S. cents,
compared with C$1.0348, or 96.64 U.S. cents, at Tuesday's North
American close.
    The loonie, as Canada's currency is colloquially known, had
closed at C$1.0506 last Thursday before the jobs data.
    The two-year bond was up 2 Canadian cents to
yield 1.300 percent, while the benchmark 10-year bond
 rose 7 Canadian cents to yield 2.808 percent.
    Stretch said that investors will likely closely watch two
U.S. data releases later this week - jobless claims and retail
sales - as the "last pieces of the economic jigsaw" ahead of a
Federal Reserve meeting next week where many expect the central
bank to announce a scaling back of its stimulus program.
    A move to slow the pace of bond-buying by the bank would
likely give a boost to the U.S. currency.
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