CANADA FX DEBT-C$ strengthens on crude rally, soft greenback
* Canadian dollar at C$1.2008 or 83.28 U.S. cents * Bond prices mostly lower across the maturity curve TORONTO, May 6 (Reuters) - The Canadian dollar rallied against its U.S. counterpart on Wednesday as crude prices surged to 2015 highs and the greenback stumbled on soft economic data. Those big drivers appeared to overshadow any market reaction from an historic election in the oil-producing province of Alberta, in which the left-wing New Democrats won a crushing victory, ending the Progressive Conservatives' 44-year hold on power. The price of crude, a significant Canadian export, has rebounded over the last month and gathered more steam on Wednesday after the American Petroleum Institute (API) reported that U.S. crude stocks fell, while a conflict involving Saudi Arabia continued in Yemen, a small producer that sits on key oil shipping routes. The U.S. dollar weakened on data that showed private employers added 169,000 jobs in April, the fewest since January 2014 and far below economists' forecast for 200,000. The currency was already under pressure following disappointing trade data on Tuesday that signaled the U.S. economy may have contracted in the first quarter. * At 9:01 a.m. EDT (1301 GMT), the Canadian dollar was at C$1.2008 to the greenback, or 83.28 U.S. cents, stronger than the Bank of Canada's official close of C$1.2072, or 82.84 U.S. cents, on Tuesday. * The currency's strongest level of the session was C$1.1985 Its weakest level was C$1.2087. * U.S. crude prices were up 2.42 percent at $61.86, while Brent crude added 2.27 percent to $69.05. * The volatile Ivey PMI data is due at 10:00 a.m. EDT . * Several U.S. Federal Reserve officials are expected to speak on Wednesday. * The Canadian dollar is expected to trade between C$1.1960 and C$1.2060 against the U.S. dollar on Wednesday, according to RBC Capital Markets. * Canadian government bond prices were mostly lower across the maturity curve, with the two-year price down 0.5 Canadian cent to yield 0.695 percent and the benchmark 10-year falling 18 Canadian cents to yield 1.76 percent. * The Canada-U.S. two-year bond spread was 8 basis points, while the 10-year spread was -42.5 basis points. (Reporting by Solarina Ho; Editing by Peter Galloway)
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