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* C$ at C$1.0278 vs US$, or 97.30 U.S. cents * U.S. manufacturing activity contracts in May * Bond prices rise across the curve By Solarina Ho TORONTO, June 3 (Reuters) - The Canadian dollar rebounded against its U.S. counterpart on Monday to its strongest level in nearly two weeks after soft U.S. manufacturing data spurred worries about the U.S. recovery and sent the U.S. dollar plunging against a range of currencies. Manufacturing activity contracted in May to its lowest level in nearly four years, the latest sign the U.S. economy is encountering a soft patch. "The U.S. yields were really affected, which caused a broad-based selloff of U.S. dollar and I think the market is generally positioned long-USD/CAD," said David Bradley, director of foreign exchange trading at Scotiabank. Bradley said after the currency broke through C$1.0310-15 level, stop-loss orders - placed to sell when a currency reaches a certain price - were triggered. "We had a quick move down to C$1.0280. It's a pretty big daily move for USD/CAD. We don't usually get ranges this big. There was definitely a lack of liquidly in the market," said Bradley. The Canadian currency finished the North American session at C$1.0278 versus the U.S. dollar, or 97.30 U.S. cents, nearly a cent stronger than Friday's finish at C$1.0368, or 96.45 U.S. cents. The Canadian dollar's performance was mixed against other major currencies on Monday. This Friday's North American employment and payrolls number will be the key data in an otherwise quiet week. Prices for Canadian government debt were mostly higher across the curve. The two-year bond rose 1.3 Canadian cents to yield 1.074 percent, while the benchmark 10-year bond rose 12 Canadian cents to yield 2.054 percent.