CANADA FX DEBT-C$ bounces back from selloff, helped by housing data
* Canadian dollar at C$1.0952 or 91.31 U.S. cents * Bond prices mixed across the maturity curve By Leah Schnurr TORONTO, Aug 11 (Reuters) - The Canadian dollar firmed against the greenback on Monday, recovering some of last week's selloff after data showed domestic housing starts unexpectedly rose in July. In a relatively light week for domestic economic data, the report showed housing starts rose to 200,098 last month, above forecasts for a decline to 193,000. That helped support the loonie, sending it to a session high at C$1.0951. At the same time, risk appetite in broader markets improved as investors were less worried about an escalation in geopolitical tensions around the world. "There's been a little bit less of the risk-off or flight to safety as some of the geopolitical events have settled down a bit, and that's allowed U.S. dollar-Canadian dollar to return to that mid-C$1.09," said Don Mikolich, executive director of foreign exchange sales at CIBC World Markets in Toronto. The Canadian dollar was at C$1.0952 to the greenback, or 91.31 U.S. cents, stronger than Friday's close of C$1.0971, or 91.15 U.S. cents. The lack of domestic data this week could leave the loonie vulnerable to any international events, as well as the U.S. data on tap, which could push the currency pairing to C$1.10 if the figures come in strong, said Mikolich. The Canadian dollar sold off on Friday, pushing into the high C$1.09s after a disappointing jobs report for July that showed growth in the labor market remained sluggish. "The fact that the Canadian dollar has held in to where we are right now in light of those employment numbers suggests there is still some underlying demand for being long Canada," said Mikolich. Canadian government bond prices were mixed across the maturity curve, with the two-year off half a Canadian cent to yield 1.062 percent, while the benchmark 10-year was up 9 Canadian cents to yield 2.062 percent. (Editing by Chizu Nomiyama)
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