CANADA FX DEBT-C$ retreats on oil prices as jobs data eyed

Thu May 7, 2015 9:37am EDT
 
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* Canadian dollar at C$1.2106 or 82.60 U.S. cents
    * Bond prices mostly higher across the maturity curve

    TORONTO, May 7 (Reuters) - The Canadian dollar eased against
its U.S. counterpart on Thursday ahead of employment data on
Friday from both the United States and Canada and as oil prices
eased after touching 2015 highs in the previous session.
    The greenback rose broadly after data showed
lower-than-expected U.S. weekly jobless claims. 
    Friday's jobs numbers for April will be among the first
major set of second-quarter data for both countries, following a
tough first quarter. 
    Central banks on both sides of the border have expressed
optimism that their economies will strengthen this quarter and
investors will assess how the data may affect the U.S. Federal
Reserve's decision on when it will begin hiking interest rates
as well as the Bank of Canada's decision on whether to keep
rates steady or make another cut.
        
    * At 9:19 a.m. EDT (1319 GMT), the Canadian dollar 
was at C$1.2106 against the greenback, or 82.60 U.S. cents,
weaker than the Bank of Canada's official close of C$1.2040, or
83.06 U.S. cents, on Wednesday.
    * The currency's strongest level of the session was C$1.2033
Its weakest level was C$1.2107.
    * U.S. data showed jobless claims rose 3,000 to a seasonally
adjusted 265,000, well below expectations of 280,000 and holding
near 15-year lows. 
    * The value of Canadian building permits had its biggest
increase in six months in March, jumping 11.6 percent to C$6.87
billion, and topping forecasts for a gain of 2.5 percent.
 
    * U.S. crude prices were down 0.82 percent at $60.43,
while Brent crude lost 0.69 percent to $67.3. 
    * The Canadian dollar, which was underperforming nearly all
of its key currency counterparts, is expected to trade between
C$1.2035 and C$1.2130 against the U.S. dollar on Thursday,
according to National Bank Financial.
    * Canadian government bond prices were mostly higher across
the maturity curve, with the two-year price flat to
yield 0.702 percent and the benchmark 10-year rising
20 Canadian cents to yield 1.8 percent.
    * The Canada-U.S. two-year bond spread was 6.7 basis points,
while the 10-year spread was -41.2.

 (Reporting by Solarina Ho; Editing by Peter Galloway)