CANADA FX DEBT-C$ awaits jobs data, further weakness eyed
* Canadian dollar at C$1.3172, or 75.92 U.S. cents * Bond prices slightly lower across the maturity curve By Alastair Sharp TORONTO, Aug 6 (Reuters) - The Canadian dollar was slightly stronger versus its U.S. counterpart on Thursday, with trading muted ahead of both Canadian and U.S. employment reports due on Friday. A strong print on the U.S. jobs data would bolster the assumption that the U.S. Federal Reserve will hike rates starting in September and make the Canadian dollar less attractive. "For me, the risk is that we get a more positive U.S. employment report, on the basis of the early indications we've had in the last few days," said Adam Cole, global head of FX strategy at Royal Bank of Canada. The number of Americans filing new applications for unemployment benefits rose less than expected last week. At 9:05 a.m. ET (1305 GMT), the Canadian dollar was trading at C$1.3172 to the greenback, or 75.92 U.S. cents, compared to Wednesday's close of C$1.3188, or 75.83 U.S. cents. Cole said a strong U.S. non-farm payrolls figure on Friday would eclipse the Canadian data and could push the currency pair through C$1.33. The last time the loonie was that weak was in 2004. Economists expect the U.S. economy to have added 223,000 jobs in July and for Canada to have added 5,000. Canadian government bond prices were slightly lower across the maturity curve, with the two-year price down 1.5 Canadian cents to yield 0.446 percent and the benchmark 10-year off 6 Canadian cents to yield 1.480 percent. The Canada-U.S. two-year bond spread was -27.1 basis points, while the 10-year spread was -78.1 basis points. The Canadian currency was also hurt by oil, a major Canadian export, slipping to multi-month lows amid a persistent global supply glut and little sign of a reduction in production. U.S. crude prices were down 1.1 percent to $44.67, while Brent crude lost 0.5 percent to $49.35. (Editing by Meredith Mazzilli)
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