CANADA FX DEBT-C$ little changed after jobs data to be restated

Tue Aug 12, 2014 4:40pm EDT

* Canadian dollar at C$1.0922 or 91.56 U.S. cents
    * Bond prices lower across the maturity curve

 (Recasts with news jobs data will be restated, adds quote from
currency strategist, updates prices)
    By Leah Schnurr
    TORONTO, Aug 12 (Reuters) - The Canadian dollar was little
changed against the greenback on Tuesday, with investors wary of
taking big bets after the country's statistical agency announced
an error had been found in the jobs report issued last week.
    The July jobs report issued last Friday had been a
disappointing one that showed the country created just 200 net
new jobs and had been responsible for a sharp selloff in the
loonie.
    The announcement from Statistics Canada that the corrected
jobs figures will be released on Aug. 15 saw the loonie drift
higher through the afternoon, recovering from losses earlier in
the day. 
    But StatsCan did not say what the error was, which left
investors cautious over what the direction of the revision will
be.
    "As much speculation as I've seen about what the potential
error could be in the report, there's really no way of telling
and it could be either negative or positive," said Greg Moore,
senior currency strategist at Royal Bank of Canada in Toronto.
    "It may mean we're stuck around these C$1.0920 levels for
the next couple of days ahead until we see that new report."
    The Canadian dollar ended the North American
session at C$1.0922 to the greenback, or 91.56 U.S. cents, a tad
stronger than Monday's close of C$1.0919, or 91.58 U.S. cents.
The loonie had initially weakened following the StatsCan
announcement.
    A drop in oil prices to a 13-month low weighed on the
loonie. Brent crude fell $1.66 to settle at $103.02 a
barrel, while U.S. crude lost 71 cents to $97.37 a
barrel.
    As an exporter of oil and other natural resources, the
Canadian dollar can be sensitive to commodity prices.
    The market was also monitoring the ongoing geopolitical
crises around the world that have caused risk sentiment to ebb
and flow. 
    The Canadian dollar is down 1.7 percent since the beginning
of July, erasing a rally in June, as optimism over the U.S.
economy has pushed investors into the greenback.
    While the loonie could consolidate in the near term, most
analysts expect it will ultimately weaken further with C$1.10
the next level to watch.
    Canadian government bond prices were lower across the
maturity curve, with the two-year off 4-1/2 Canadian
cents to yield 1.088 percent and the benchmark 10-year
 down 34 Canadian cents to yield 2.115 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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