CANADA FX DEBT-C$ climbs to one-week high, eyes equities
* C$ at C$0.9939 vs US$, or $1.0061 * Currency moves higher ahead of BoC * Bond prices climb across curve By Jennifer Kwan TORONTO, April 13 (Reuters) - The Canadian dollar edged slightly higher against its U.S. counterpart on Friday, supported by the expectation there could be a shift in sentiment on the timing of the Bank of Canada's next rate move. At around 8:10 a.m. (1210 GMT), the Canadian dollar was at C$0.9939 versus the U.S. dollar, or $1.0061, up a hair from its North American finish at C$0.9945 versus the U.S. dollar, or $1.0055. "I think the market expectation is for a hawkish Bank of Canada next week on Tuesday," said Firas Askari, head of foreign exchange trading at BMO Capital Markets. "No one expects any imminent signals of an immediate rate hike, but I think the tone has changed dramatically out of the Bank of Canada." Askari also said the market is still digesting a stellar March employment figure released last week that adds to evidence that the Canadian economy is finding its footing. Canada's ailing jobs market sprang back to life in March with a stunning 82,300 net new jobs, the most since September 2008 and a tentative sign that the economy may be growing enough muscle to pressure the central bank to raise interest rates. The median forecast in a Reuters poll of 40 economists and strategists shows the next interest rate hike will come in the second quarter of 2013. Still, the currency traded in a narrow range of between C$0.9926 versus the greenback, its strongest since April 6, and C$0.9972 on Friday as it tracked mixed global equities amid weak Chinese growth data, Spain's rising borrowing costs and U.S. earnings. World shares held steady and commodities markets sank on Friday after China's first-quarter growth failed to meet expectations. Chinese growth eased to an annual rate of 8.1 percent in the first quarter from 8.9 in the previous quarter, and below an 8.3 percent forecast and the weakest pace in nearly three years. Meantime, U.S. stock index futures trimmed losses after JPMorgan reported higher earnings per share as the company bought back stock. "It is tracking the broad risk-on and risk off, both of which were seen last night and this morning. I'd look at the influence of the Chinese GDP. I would look at the move to bid equities higher," said Jack Spitz, managing director of foreign exchange at National Bank. Canadian government bond prices climbed across the curve, with Canada's two-year bond edging up 2 Canadian cents to yield 1.228 percent. The 10-year bond added 18 Canadian cents to yield 2.025 percent.
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