CANADA FX DEBT-C$ rises on weak dollar, firm oil
* C$ higher at C$0.9982 vs US$, or $1.0018 * Market awaits Canada trade data, U.S. jobs data * Bond prices ease across curve By Jennifer Kwan TORONTO, April 12 (Reuters) - The Canadian dollar climbed against its U.S. counterpart on Thursday, in tandem with moves in the euro and other growth-linked currencies, and also got a lift from higher oil prices. At around 8:00 a.m.(1200 GMT), the Canadian dollar was at C$0.9982 versus the U.S. dollar, or $1.0018, up from Wednesday's finish at C$1.0042 versus the U.S. dollar, or 99.58 U.S. cents. The currency benefited from a mix of factors including a weak greenback following comments on Wednesday from Janet Yellen, vice chair of the U.S. Federal Reserve, said Camilla Sutton, chief currency strategist as Scotia Capital. Yellen said the Fed had a variety of options if it decided to seek another round of asset purchases, and that easy monetary policy was appropriate given high unemployment and the headwinds facing the economy, as she left the door open to further action. "If there's room for further quantitative easing that would be loosening of monetary policy, which is in turn negative for the U.S. dollar," said Sutton. The euro and other growth-linked currencies gained on Thursday, including the Australian dollar, which firmed on data showing employment outpaced expectations. Also supporting Canada's currency was firm oil prices, said Sutton. Brent crude oil steadied around $120 per barrel on Thursday, supported by a weaker greenback and hopes of faster economic growth, despite news of higher oil production by Saudi Arabia and a fairly bearish report from the IEA energy advisory body. Markets were awaiting domestic trade data, and will digest U.S. data on the jobs market and producer prices for more direction. For the most part, the currency shrugged off an Italian bond auction where yields jumped to 3.89 percent, a rise of more than one percentage point compared with a month ago, as budget troubles in Spain and concerns over global growth prompted investors to demand a higher return to buy Italy's paper. Canadian government bond prices fell across the curve. Canada's two-year bond sagged 2 Canadian cents to yield 1.230 percent, while the 10-year bond fell 20 Canadian cents to yield 2.039 percent.
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