CANADA FX DEBT-C$ firms on Friday's jobs data as U.S. dollar slides

Mon Jun 8, 2015 4:50pm EDT
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(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
    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)