CANADA FX DEBT-Canadian dollar slides on risk selloff

* C$ ends at C$0.9849 vs US$, or $1.0153
    * Disappointing U.S. jobless claims weigh
    * Signs of China rebound help lift sentiment
    * Focus turning to Tuesday's Bank of Canada announcement

    By Claire Sibonney
    TORONTO, Oct 18 (Reuters) - The Canadian dollar eased
against its U.S. counterpart on Thursday, succumbing to a host
of negative factors including weaker-than-expected U.S.
unemployment data and soft commodity markets.
    The risk-related currency took early direction from U.S.
jobless claims data that showed the number of Americans filing
new claims for jobless benefits spiked last week, reversing a
sharp decline in the prior week. 
    Uncertainty over the commitment of Germany and France to
battle the euro zone debt crisis also weighed on confidence.
    "We saw a little bit of disappointment in the U.S. jobs
data, and no positive headlines form the EU summit triggered
some profit taking," said Michael O'Neill, vice President of FX
trading at Jitneytrade.
    The Canadian dollar ended the North American
session at C$0.9849 to the greenback, or $1.0153, compared with
C$0.9780, or $1.0225, at Wednesday's North American close.
    The resource-linked Canadian currency had initially
strengthened overnight after data showed that China, one of the
world's hungriest consumers of many commodities, had likely hit
the bottom of a seven-quarter-long economic downturn between
July and September. 
    "The Canadian dollar is ping-ponging between C$0.9740 and
C$0.9860," said O'Neill.
    The currency underperformed other G10 majors amid
uncertainty over whether the Bank of Canada plans to drop a
hawkish bias on interest rates in its policy announcement next
    "The fact that we've got the Canada rate announcement on
Tuesday will keep the Canadian dollar at bay until then," said
Matt Perrier, director of foreign exchange sales at BMO Capital
    A Reuters poll released on Thursday suggested the central
bank will postpone interest rate hikes until the fourth quarter
of next year and will likely water down rather than eliminate
its hawkish language. 
    John Curran, senior vice president at CanadianForex, said
that if the Bank of Canada retained language about an eventual
rate rise the currency could significantly strengthen, whereas
movement would likely be more subdued if the language were
    Canadian government bond prices climbed across the curve in
the flight-to-safety bid and outperformed U.S. Treasuries. 
    The two-year bond was up 2 Canadian cents to
yield 1.125 percent, while the benchmark 10-year bond
 added 16 Canadian cents to yield 1.894 percent.