CANADA FX DEBT-C$ softer after weak domestic jobs report

Fri Mar 9, 2012 8:12am EST
 
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* C$ softer vs Thursday close as jobs data misses

* Bond prices inch slightly higher

* Net job loss of 2,800 in Feb from January

By Claire Sibonney

TORONTO, March 9 (Reuters) - The Canadian dollar weakened against the U.S. currency on Friday after unexpected weak domestic employment data showed the economy added no net new jobs in February.

Canada lost 2,800 jobs in the month. The creation of 9,100 full-time jobs was offset by 12,000 fewer part-time positions. The unemployment rate dropped to 7.4 percent from 7.6 percent in January, but only because fewer people searched for work.

"The weakening in the Canadian dollar is appropriate. I think this is a bit of a disappointment and probably should take a bit of the recent shine off the currency," said Douglas Porter, deputy chief economist at BMO Capital Markets.

The data initially pressured the currency, sending it to a session low of C$0.9942 versus the greenback, or $1.0058. But it pared losses ahead of the key U.S. jobs report due at 8:30 a.m. (1330 GMT).

At 7:53 a.m. the Canadian dollar stood at C$0.9922 versus the U.S. dollar, or $1.0079, down from Thursday's North American session close at C$0.9911 to the U.S. dollar, or $1.0090.   Continued...