* C$ hits C$1.0198 vs US$, or 98.06 U.S. cents
* Canadian jobs number pushes C$ to strongest in 3 weeks
* Government debt yields spike
By Alastair Sharp
TORONTO, June 7 The Canadian dollar hit its
strongest level against the U.S. dollar since mid-May on Friday
after data showed the Canadian economy added a robust 95,000
jobs last month.
The stellar performance beat market expectations for a
15,000 gain and was the largest monthly addition of new jobs in
"Eighty percent was full-time status, which is certainly
encouraging. There is an element of skepticism with such a
stellar number, that it could be revised lower over the next
couple of months," said Gareth Sylvester, director at Klarity FX
in San Francisco.
"We do take it with a pinch of salt, but certainly the FX
markets ran with it and we saw USD/CAD immediately push higher."
The more globally significant U.S. non-farm payrolls report
released at the same time showed modest growth roughly in line
with market expectations.
The currency finished at C$1.0198 versus the
greenback, or 98.06 U.S. cents, after trading as strong as
C$1.0166, or 98.37 U.S. cents, after the jobs reports. That
compared with C$1.0250 just before the news and C$1.0260 at
Thursday's North American close.
"It's tough to imagine a better combination for the Canadian
dollar. You've got a U.S. economy that's still growing
relatively healthily, not as well as everybody would hope for,
but a decent U.S. number and a spectacular Canadian number,"
said Doug Porter, chief economist at BMO Capital Markets.
"It really doesn't get any better than that for the Canadian
dollar," he said.
The price of Canadian government debt plunged across the
curve, with the two-year bond down 15 Canadian cents
to yield 1.131 percent, its highest yield since February.
The benchmark 10-year bond fell 92 Canadian
cents to yield 2.149 percent, testing highs last seen in early