CANADA FX DEBT-C$ firms on Friday's jobs data as U.S. dollar slides
(Adds strategist's comments, details, closing figures) * Canadian dollar at C$1.2398 or 80.66 U.S. cents * Bond prices mostly higher By Solarina Ho TORONTO, June 8 (Reuters) - The Canadian dollar extended gains against a weakened U.S. dollar on Monday, building on Friday's release of surprisingly robust Canadian jobs numbers. The Canadian and U.S. dollars outperformed their counterparts on Friday after strong May employment numbers in both countries. Data showed Canadian employers added 58,900 jobs in the month, far above the 10,000 jobs economists polled by Reuters had expected, while U.S. job growth accelerated sharply in May, rising by 280,000, signaling momentum in the economy. "I would say it's a U.S. dollar move more than anything else today," Greg Moore, senior currency strategist at RBC Capital Markets, said of Monday's action. "Part of it is a bit of an unwind from Friday's move ... You had a bit of a buying North American theme because of the pretty strong employment reports." The U.S. dollar, which fell more than 1 percent against a basket of currencies on Monday, was also weaker after a Bloomberg report cited an unnamed French official as saying that U.S. President Barack Obama had commented that a strong dollar is a problem. The White House denied the report, but investors were wary due to comments from officials in recent months voicing concerns about the impact of a strong U.S. dollar on growth and exports. The Canadian dollar, which was weaker against other key currencies, was at C$1.2398 against the greenback, or 80.66 U.S. cents, stronger than the Bank of Canada's official close of C$1.2439, or 80.39 U.S. cents, on Friday. The currency traded between C$1.2394 and C$1.2473 during the session. The loonie's move came despite lower prices for oil, a key Canadian export. U.S. crude settled down 1.67 percent at $58.14, while Brent crude settled down 62 cents, or 1 percent, at $62.69 a barrel. "The crude move is pretty well within the range of the past two trading days ... so I don't think that's really gotten much attention from the currency," Moore said. Canadian government bond prices were mostly higher across the maturity curve, with the two-year up 2 Canadian cents to yield 0.631 percent and the benchmark 10-year rising 11 Canadian cents to yield 1.814 percent. The Canada-U.S. two-year bond spread was -5.8 basis points, while the 10-year spread was -57.0 basis points. (Reporting by Solarina Ho; Editing by Peter Galloway)
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