CANADA FX DEBT-C$ sags on weak U.S. jobs data

Mon Apr 9, 2012 8:08am EDT
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* C$ at C$0.9989 vs US$, or $1.0011
    * Markets weighed down by U.S. jobs data
    * Bonds edge higher across curve

    By Jennifer Kwan	
    TORONTO, April 9 (Reuters) - Canada's dollar stumbled
against its U.S. counterpart on Monday, tracking moves in
overseas markets that reacted to much weaker-than-expected U.S.
jobs data on Friday that raised concerns about the strength of
the world's largest economy. 	
    Friday's data showed U.S. payrolls grew by 120,000 in March,
far below the expected gain of 203,000 jobs, keeping the door
open for the U.S. Federal Reserve to provide more monetary
support to the fragile economy. 	
    A lack of major economic data in Canada and the United
States on Monday will keep investors focused on that U.S.
employment report, which came in on an equity market holiday.
Markets were closed for the Good Friday holiday, and some Asian
markets, including Australia and Hong Kong, and European markets
remain shuttered.	
    "We're picking up from the holiday-long weekend, the
slightly weaker than anticipated non-farm payroll numbers on
Friday sent the market into a bit of a risk-off mode," said Matt
Perrier, a director of foreign exchange sales at BMO Capital
    "Risk aversion has started to filter back into the market
and that has lent an underlying support to the U.S. dollar in
    At 7:55 a.m. (1155 GMT), the Canadian dollar was at
C$0.9989 versus the U.S. currency, or $1.0011, down from
Thursday's North American finish at C$0.9938 versus the U.S.
currency, or $1.0062.	
    The U.S. reading followed stellar Canadian jobs data, which
sent Canada's dollar sharply higher against the greenback on
Thursday. The 82,300 jobs added in March eight times higher than
the gain of 10,000 jobs that had been predicted by economists in
a Reuters survey. 	
    Perrier said the Canadian dollar will likely remain trapped 
in a recent range of C$0.9950 to C$1.0050 against the U.S.
    "We've got to see Canada weaken through that C$1.0025-50
area to start things accelerating to the topside for the U.S.
dollar versus the Canadian dollar," he said.	
    Canadian government bond prices were higher across the curve
with Canada's 2-year bond up 10 Canadian cents to
yield 1.212 percent, while the 10-year bond gained
79 Canadian cents to yield 2.037 percent.