CANADA FX DEBT-C$ weakens vs dollar on contrasting jobs data, lower oil

Fri Dec 4, 2015 10:30am EST
 
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* Canadian dollar at C$1.3374 or 74.77 U.S. cents
    * Bond prices mixed across the maturity curve

    By Fergal Smith
    TORONTO, Dec 4 (Reuters) - The Canadian dollar weakened
against the U.S. dollar Friday after contrasting U.S. and
Canadian employment data, while crude oil fell as OPEC sources
said the group would likely maintain their policy of pumping
near-record volumes of oil.
    Canada shed 35,700 jobs in November, handily exceeding
economists' forecasts for a loss of 10,000 jobs and erasing the
temporary boost the labor market had seen from October's federal
election. 
    Slightly stronger than expected U.S. employment numbers
indicated the Fed is likely going to start tightening later this
month, according to Paul Ferley, assistant chief economist at
Royal Bank of Canada, contributing "to further weakening in the
Canadian dollar."
    At 9:38 a.m. EST (1438 GMT), the Canadian dollar 
was trading at C$1.3374 to the greenback, or 74.77 U.S. cents,
weaker than Thursday's close of C$1.3338, or 74.97 U.S. cents.
    The currency's strongest level of the session was C$1.3320,
while it hit its weakest in 11 days at C$1.3416.
    Oil prices fell after OPEC sources said the group, whose
ministers were meeting in Vienna, planned to keep pumping oil at
near-record levels, even as a global crude glut has depressed
prices. 
    Also weighing on the Canadian dollar, Canada's trade deficit
unexpectedly jumped to C$2.76 billion ($2.08 billion) in October
as exports to the U.S. dropped by the most in almost 2-1/2
years. 
    Canadian government bond prices were mixed across the
maturity curve, after having sold off on Thursday in sympathy
with German Bunds after European Central Bank easing was less
aggressive than some investors expected.
    The two-year price was up 2 Canadian cents to
yield 0.643 percent and the benchmark 10-year rose
13 Canadian cents to yield 1.606 percent. The 20-year and
30-year issues fell.
    U.S. crude prices were down 2.41 percent to $40.09 a
barrel, while Brent crude lost 1.62 percent to
$43.13. 

 (Reporting by Fergal Smith; Editing by Bernadette Baum)