CANADA FX DEBT-Canadian dollar dips ahead of jobs data
* C$ down at $1.0154 vs US$, or 98.48 U.S. cents * Bond prices creep up across curve TORONTO, July 6 (Reuters) - The Canadian dollar drifted lower against the greenback on Friday, tracking a drop in global equities and commodity prices ahead of critical North American jobs data. U.S. employers are expected to have added 90,000 new workers to their payrolls in June, according to a Reuters survey of economists. That rise would be modest but still better than the 69,000 jobs created in May, which was the fewest in a year. In Canada, the economy likely created a paltry 5,000 new jobs in June, for a second straight month of sluggish hiring as employers worried about fallout from the European debt crisis and the stalled U.S. economy. Both reports are due at 8:30 a.m. (1230 GMT). At 7:51 a.m., the Canadian currency was at C$1.0154 versus the U.S. dollar, or 98.48 U.S. cents, slightly weaker than Thursday's North American session close of C$1.0144 against its U.S. counterpart, or 98.58 U.S. cents. Jeremy Stretch, head of currency strategy at CIBC in London, said unless market participants see a materially stronger-than expected Canadian labor market, the Canadian dollar should see solid resistance near the 200-day moving average of C$1.0116 and its high of C$1.0100 hit on Thursday. South of the border, better-than-expected jobs data on could be a positive for risk assets, or negative if markets interpret it as suggesting the U.S. Federal Reserve will be less likely to take further steps to stimulate the economy. Meanwhile, investors remained unimpressed after a trio of major central banks loosened monetary policy on in the previous session. Spanish 10-year government bond yields extended their rise past 7 percent on Friday, a level which is not a sustainable borrowing rate indefinitely. Canadian bond prices edged up across the curve. Canada's two-year government bond rose 4 Canadian cents to yield 1.010 percent, while the benchmark 10-year bond added 11 Canadian cents to yield 1.709 percent.
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