CANADA FX DEBT-C$ flat as North American jobs reports offset each other

Fri Jun 6, 2014 4:25pm EDT

* Canadian dollar at C$1.0930, or 91.49 U.S. cents
    * Bond prices mostly higher across the maturity curve

 (Adds details, quotes, updates prices)
    By Leah Schnurr
    TORONTO, June 6 (Reuters) - The Canadian dollar was little
changed against the greenback on Friday as investors weighed an
underwhelming domestic jobs report against data that showed a
solid pace of hiring south of the border. 
    The Canadian economy created 25,800 jobs last month, largely
in line with expectations, but the positions were part-time.
 
    Economists said the details were more disappointing than the
overall figure. In contrast, U.S. employment returned to its
pre-recession level with 217,000 jobs added in May.
 
    The loonie saw some choppy trading immediately following the
reports, swinging in both directions before ultimately pulling
slightly lower. 
    "It's slightly negative just because the U.S. report was a
bit better than expected, whereas the details of the Canadian
release are a bit disappointing," said Doug Porter, chief
economist at BMO Capital Markets in Toronto. 
    "So I would say on balance it's a small strike against the
Canadian dollar, but I don't think it's going to change the
channel on the currency."
    The Canadian dollar ended the North American
session at C$1.0930 to the greenback, or 91.49 U.S. cents,
nearly flat compared to Thursday's close of C$1.0929, or 91.50
U.S. cents.
    The loonie has been trading in a slim range in recent weeks
and analysts say it will likely be comfortable trading around
either side of C$1.10 for some time.
    A close above C$1.0930 earlier in the week had appeared to
set the stage for a move towards C$1.1010 and C$1.1050, but
momentum has been lacking for the U.S. dollar-Canadian dollar
pair, said Gareth Sylvester, director at Klarity FX in San
Francisco.
    "I'm still confident that we'll see moves up to those levels
in the next few weeks and we remain advocates of that, unless we
saw a break back down through C$1.0880, in which case that move
might be postponed and we just reestablish that C$1.0810 to
C$1.0950 trading range," Sylvester said.
    Canadian government bond prices were mostly higher across
the maturity curve, though the two-year was down 0.3
Canadian cents to yield 1.061 percent. The benchmark 10-year
 was up 10 Canadian cents to yield 2.320 percent.

 (Additional reporting by Allison Martell; Editing by Diane
Craft)
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