CANADA FX DEBT-C$ trims session losses after Canada jobs data

Fri Mar 13, 2015 9:22am EDT
 
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* Canadian dollar at C$1.2733 or 78.54 U.S. cents
    * Bond prices mostly higher across the maturity curve

    By Solarina Ho
    TORONTO, March 13 (Reuters) - The Canadian dollar pared
earlier session losses against its U.S. counterpart on Friday
after data showed the economy lost fewer jobs than expected in
February.
    Canadian jobs decreased by 1,000 in February compared with
forecasts for a loss of 5,000. The unemployment rate rose to 6.8
percent, with 34,000 full-time jobs created and 34,900 part-time
jobs lost. 
    "I think people were positioned for weakness here, but we
didn't see a huge reaction really and it was short lived," said
Mazen Issa, macro strategist at TD Securities.
    "The details actually don't look good. If we didn't see that
large scale weakness in employment yet, then we're going to end
up seeing it at some point ... It's that 'buy on dips' narrative
for USD/CAD and I think that's exactly what we're seeing here."
    At 9:05 a.m. (1405 GMT), the Canadian dollar was
trading at C$1.2733 to U.S. dollar, or 78.54 U.S. cents,
marginally stronger than just prior to the data's release, but
still weaker than Thursday's finish of C$1.2703, 78.72 U.S.
cents.
    Lower crude prices were also pinching the loonie on Friday,
with Brent oil falling below $57 a barrel and U.S. crude falling
below $47 a barrel after the International Energy Agency said
global oversupply was intensifying and U.S. oil production
showed no signs of slowing yet. 
    Canada's economic growth has been hurt by the steep drop in
the price of oil, a key export. The natural resources sector,
which includes oil and gas extraction, shed 16,900 jobs last
month.
    Canadian government bond prices were mostly higher across
the maturity curve, with the two-year up half a
Canadian cent to yield 0.573 percent and the benchmark 10-year
 rising 9 Canadian cents to yield 1.486 percent.

 (Reporting by Solarina Ho; Editing by Meredith Mazzilli)