CANADA FX DEBT-C$ tilts lower ahead of key jobs data

Thu Nov 5, 2009 4:29pm EST
 
[-] Text [+]
 * C$ ends at C$1.0658 per U.S. dollar
 * Bond prices end down as stocks lure investors
 * Markets await Friday's U.S., Canada October jobs data
 (Recasts)
 By Frank Pingue
 TORONTO, Nov 5 (Reuters) - Canada's dollar ended slightly
lower versus the U.S. currency in a muted session on Thursday
as traders avoided big commitments ahead of key jobs data due
on Friday from Canada and the United States.
 The Canadian dollar, coming off a string of three straight
higher closes, spent the North American session in a range of
C$1.0606 to the U.S. dollar and C$1.0669 to the U.S. dollar.
 "I think the market is just waiting for the employment data
tomorrow to be honest," said David Bradley, director of foreign
exchange trading Scotia Capital. "The Canadian employment data
often surprises to the upside but I wouldn't be surprised if we
have a downward surprise this time."
 Market watchers will study Friday's employment reports from
Canada and the United States for further clues on the strength
of the economic recovery. The Canadian report is expected to
show the economy added 10,000 jobs in October. [ID:nN04446691]
 Also weighing on the Canadian currency was a slide in gold
prices from the record high hit in the last session and a drop
in oil prices of nearly 1 percent. Oil and gold are considered
key Canadian exports and their prices often influence moves in
the currency.
 The Canadian dollar closed at C$1.0658 to the U.S. dollar,
or 93.83 U.S. cents, down from C$1.0638 to the U.S. dollar, or
94.00 U.S. cents, at Wednesday's close.
 Bradley said that if the Canadian jobs data falls short of
expectations, it could pull the Canadian dollar down through
C$1.0685, which he felt could trigger stops and send it toward
the C$1.0725-C$1.0750 area.
 The Canadian dollar hit its session high early in the
morning, shortly after data showed U.S. jobless claims fell and
productivity rose at its fastest pace in six years. The reports
helped spur investor appetite for riskier assets.
[ID:nN05106320]
 BOND PRICES DROP
 Canadian bond prices ended a touch lower as investors piled
into equities after the U.S. data helped bolster investor
confidence in the economy.
 Toronto's S&P/TSX composite index .GSPTSE rose 1 percent
to 11,180.70. while the Dow Jones industrial average .DJI
ended up 2 percent at 10,005.96.
 Midway through the session, the Bank of Canada said its
C$3.5 billion auction of 3.5 percent Government of Canada bonds
due 2020 yielded an average 3.700 percent. [ID:nTOR006901]
 The two-year bond CA2YT=RR fell 3 Canadian cents to
C$99.65 to yield 1.423 percent, while the 10-year bond
CA10YT=RR shed 36 Canadian cents to C$101.79 to yield 3.527
percent.

















































 

commentary

An investor uses his mobile phone at the Dubai Financial Market December 1, 2009. REUTERS/Mosab Omar
Is Dubai bad news for the rest of us?

Financial markets went down on Dubai because they have become addicted to moral hazard and anything that doesn't conform with the idea that all shall be bailed out is scary.  Commentary