CANADA FX DEBT-C$ weaker after U.S. jobs report keeps Fed on course

Fri Aug 7, 2015 9:32am EDT
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* C$1.3173 buys one U.S. dollar
    * Bond prices lower across the maturity curve

    By Alastair Sharp
    TORONTO, Aug 7 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Friday as employment reports
from both countries kept their divergent monetary policy paths
on track.
    The loonie, as Canada's currency is colloquially known, has
lost almost 10 percent of its value since May. The central bank
has cut rates twice this year as a plunge in the price of oil
batters the country's energy industry.
    The Canadian economy added 6,600 jobs in July, above the
average forecast of economists, but the number of full-time jobs
    U.S. employment rose at a solid clip in July and wages
rebounded after unexpectedly stalling in the prior month, signs
of an improving economy that could open the door to a Federal
Reserve interest rate increase in September. 
    "Going into the report it (the Canadian dollar) was quite a
bit stronger, and it's since lost all that ground that it had,"
said Doug Porter, chief economist at BMO Capital Markets.
    "I think some of that is just more reflective of a solid
U.S. report today that keeps the Fed on track."
    The Canadian dollar was trading at C$1.3173 to the
greenback, or 75.91 U.S. cents, weaker than Thursday's close of
C$1.3108, or 76.29 U.S. cents.
    U.S. crude prices were down 1 percent at $44.20 a
barrel, while Brent crude was off 1.2 percent at
    Canadian government bond prices were mostly lower across the
maturity curve, with the two-year down 2 Canadian
cents to yield 0.445 percent and the benchmark 10-year
 up 8.5 Canadian cents to yield 1.442 percent.

 (Additional reporting by Allison Martell)