* C$ at C$1.0087 vs US$, or 99.14 U.S. cents
* March building permits surge past expectations
* Ivey PMI data weaker than expected
* Canadian employment data on Friday in focus
* Bond prices fall across curve
By Solarina Ho
TORONTO, May 6 The Canadian dollar was
marginally weaker against its U.S. counterpart on Monday as the
U.S. dollar held firm following Friday's better-than-forecast
U.S. employment data, though volumes were thin due to holidays
in Britain and Japan.
The Canadian currency weakened slightly following the
release of Ivey Purchasing Managers Index data that showed the
pace of business purchasing slowed more severely than expected
Earlier, the currency had briefly strengthened after the
release of Canadian building permits data, which surged past
expectations in March.
"Building permits were better than expected. I don't think
you're going to see too many buyers on a third-tier data like
permits," said Benjamin Reitzes, senior economist and foreign
exchange strategist at BMO Capital Markets.
"We're going to wait until Friday's employment numbers in
Canada before things get a little bit more exciting on the
Canadian dollar front."
At 10:16 a.m. (1416 GMT), the Canadian dollar,
which was mostly stronger against other major currencies, was
trading at C$1.0087 versus the U.S. dollar, or 99.14 U.S. cents,
weaker than its Friday close at C$1.0078, or 99.23 U.S. cents.
The currency's movements were expected to be subdued until
Friday's Canadian employment data. The report is expected to
show the economy added 15,000 jobs in April, while the
unemployment rate held steady at 7.2 percent, according to a
Reuters survey of analysts.
Reitzes said currency traders are also looking for
additional clues on what newly appointed Bank of Canada Governor
Stephen Poloz will say about monetary policy.
Prices for Canadian government bonds were lower across the
curve. The two-year bond fell less than half a
Canadian cent to yield 0.966 percent, while the benchmark
10-year bond slipped 3 Canadian cents to yield 1.774