CANADA FX DEBT-C$ holds steady after last week's jobs data
* C$ at C$0.9914 vs US$, or $1.0087 * Weak Cdn jobs data offset by recent BoC comments * Bond prices mostly lower By Jon Cook TORONTO, Aug 13 (Reuters) - Canada's dollar was little changed on Monday against its U.S. counterpart, as weakness from last week's soft domestic jobs data was offset by recent supportive comments from the Bank of Canada that suggested the bank may raise interest rates. Canada's economy unexpectedly lost 30,400 jobs in July in a third disappointing month for the labor market with growth failing to gain momentum, data on Friday showed. "It's very quiet," said David Bradley, director of foreign exchange trading at Scotiabank. "If the Canadian dollar does continue to appreciate it's going to do it slowly." At 8:08 a.m. EDT (1208 GMT), the Canadian currency was at C$0.9914 against the U.S. dollar, or $1.0087, virtually unchanged from Friday's close at C$0.9910, or $1.0091. Overnight, Canada's dollar touched last week's three-month high against the greenback at C$0.9906, or $1.0095, and Bradley said the currency would likely stay within a tight range between C$0.9850 and parity with the greenback. "After the move over the last week or two we're probably due for a bit of a correction," he added. The Canadian currency was boosted last week after remarks from Bank of Canada Governor Mark Carney that signaled the central bank may still raise interest rates. While he acknowledged that Canada's economy was being negatively impacted by the global slowdown, Carney nevertheless told the BBC: "we may withdraw some of that monetary policy stimulus." Carney has held interest rates at an ultra-low 1 percent for nearly two years, but the prospect of the bank raising rates well ahead of the U.S. Federal Reserve has helped boost the Canadian currency since the beginning of June. The Canadian dollar was also taking some direction from the euro, which held steady on Monday, helped by the prospect of European Central Bank action to tackle the debt crisis. Canadian bond prices were mostly lower. The two-year bond fell 4 Canadian cents to yield 1.148 percent, and the benchmark 10-year bond dropped 26 Canadian cents to yield 1.810 percent.
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