CANADA FX DEBT-C$ starts May on a weak note
* Canadian dollar at C$1.0990 or 90.99 U.S. cents * Bond prices mostly lower across the maturity curve By Leah Schnurr TORONTO, May 1 (Reuters) - The Canadian dollar lost ground against the greenback on Thursday, getting off to a soft note for May as the currency entered what is typically a seasonally weak period for the loonie. Investors were also digesting the outlook for global economic growth as data showed growth in China's vast manufacturing sector increased slightly in April, though the figure came in just below expectations. The loonie can be sensitive to economic developments out of China but the data did not provide the currency with much support on Thursday. China is the world's second-largest economy and a major consumer of natural resources. Trading could be quieter than usual during the session with May Day holidays in Europe and much of Asia. The Canadian dollar bounced higher through March as it recovered from a 4-1/2-year low, but that rally ran out of momentum through most of April. The currency has been comfortable trading around either side of the C$1.10 level in recent weeks. "There's a very definite seasonal tendency for the early- to mid-part of May to be better for U.S. dollar-Canadian dollar and it was very good for U.S. dollar-Canadian dollar last year," said Shaun Osborne, chief currency strategist at TD Securities in Toronto. "The 2014 trading pattern to me looks a fair bit like what we saw last year. So, given the bounce we had last year, given the general seasonal trend over the last 15 or so years for May to be a little bit better for the U.S. dollar from a seasonal point of view, I do think we're close to a low point here." The Canadian dollar was at C$1.0990 to the greenback, or 90.99 U.S. cents, weaker than Wednesday's close of C$1.0960, or 91.24 U.S. cents. Ontario, Canada's most populous province and home to much of its manufacturing sector, is due to release its budget later in the day. While it does present risk for the currency, the sustained impact is likely muted for Canadian dollar traders, Camilla Sutton, chief currency strategist at Scotiabank, wrote in a note. Investors were also turning their attention to Friday's U.S. unemployment report for April, with the economy is expected to have added 210,000 jobs. Canada will not release its labor market report until next week. Canadian government bond prices were mostly lower across the maturity curve, though the two-year was up 0.4 Canadian cents to yield 1.079 percent, while the benchmark 10-year was off 1 Canadian cent to yield 2.407 percent. (Editing by Chizu Nomiyama)
© Thomson Reuters 2016 All rights reserved.