CANADA FX DEBT-C$ firms as market calms; Canada data mixed

Fri Aug 14, 2015 9:54am EDT
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* Canadian dollar at C$1.3047 or 76.65 U.S. cents
    * Bond prices mostly lower across the maturity curve

    TORONTO, Aug 14 (Reuters) - The Canadian dollar firmed
against the greenback on Friday, recouping earlier losses as
investors digested data from the United States and Canada, and
as calm returned to markets following a volatile trading week.
    In Canada, manufacturing sales jumped in 1.2 percent in
June, the biggest gain since March and a welcome sign of
economic activity following an overall lackluster first half of
the year. Figures still fell short of economists' elevated
projections for a 2.1 percent rise, however. 
    The U.S. dollar pared losses against a basket of key
counterparts following U.S. producer price data for July that
showed signs of some pickup in inflation, which added to market
expectations the Federal Reserve could be hiking interest rates
as early as next month. 
    The price of U.S. crude, a major Canadian export, rose on
Friday after having fallen to its cheapest level in 6-1/2 years.
    * At 9:47 a.m. EDT (1347 GMT), the Canadian dollar 
was trading at C$1.3047 to the greenback, or 76.65 U.S. cents,
slightly firmer than the Bank of Canada's official close of
C$1.3064, or 76.55 U.S. cents.
    * The currency stayed within a narrow trading range,
however, between C$1.3031 and C$1.3087.
    * The Canadian dollar is expected to trade between C$1.30
and C$1.31 against the U.S. dollar on Friday, according to
    * Canadian government bond prices were mostly lower across
the maturity curve, with the two-year price down 1.5
Canadian cents to yield 0.422 percent and the benchmark 10-year
 falling 15 Canadian cents to yield 1.415 percent.
    * The Canada-U.S. two-year bond spread was -30.8 basis
points, while the 10-year spread was -79.5 basis points.

 (Reporting by Solarina Ho)