CANADA FX DEBT-Canada dollar stuck in rut after jobs data

Mon May 12, 2014 5:05pm EDT

* Canadian dollar at C$1.0897 or 91.77 U.S. cents
    * Bond prices lower across curve

 (Adds analyst comment, updates prices)
    By Solarina Ho and Alastair Sharp
    TORONTO, May 12 (Reuters) - The Canadian dollar was
unchanged against its U.S. counterpart on Monday, failing to
recover after a sharp retreat on Friday on data that showed
surprising job losses in Canada in April.
    The currency had jumped to its strongest level since January
early last week. But it took a tumble after figures showed
Canada lost 28,900 jobs in April, versus expectations of 12,000
net new positions. 
    The dismal jobs data led one analyst to suggest the currency
will remain in a C$1.08 to C$1.0950 range without major
catalysts on the horizon.
    "All I see for Canada at the moment is sluggish employment
growth, poor trade, and not a lot else going on in the domestic
economy," said Shaun Osborne, chief currency strategist at TD
Securities. "So I really think Canada is likely to struggle here
on a go-forward basis."
    The Canadian dollar ended the session at C$1.0897
against the greenback, or 91.77 U.S. cents, almost exactly where
it closed on Friday.
    "The jobs data was a bit shocking on Friday for most," said
Darcy Browne, managing director for capital markets trading at
CIBC.
    "The sentiment has turned a little bit in terms of everyone
thinking the higher end of the perceived range is no longer
going to be seen at C$1.12, C$1.15, so we're running into some
decent selling on approach to C$1.09. I think there'll be even
more at C$1.10."
    He said the currency will likely take its cues from
sentiment in other markets in the near term and trade between 
$1.0820 and C$1.0920.
    Canadian government bond prices were lower across the
maturity curve, with the two-year down 2-1/2 Canadian
cents to yield 1.072 percent, and the benchmark 10-year
 declining 32 Canadian cents to yield 2.400 percent.

 (Editing by Peter Galloway)
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