CANADA FX DEBT-C$ nudges higher on hopes for stronger jobs data
* Canadian dollar at C$1.0917 or 91.60 U.S. cents * Bond prices higher across the maturity curve By Solarina Ho TORONTO, Aug 13 (Reuters) - The Canadian dollar strengthened marginally against its U.S. counterpart on Wednesday with traders cautiously optimistic that July's domestic employment figures could be more positive than previously thought after the country's statistical agency said the original report contained an error and must be restated. Statistics Canada said on Tuesday that the corrected jobs estimates will be released on Friday, but did not specify what the error was. The original report, released last Friday, showed the economy added just 200 jobs in July, far fewer than analysts had forecast. "There is certainly a view that everybody is looking at this through rose-tinted spectacles; that they expect the revisions to be an improvement, and quite sizeable," said Amo Sahota, director at Klarity FX in San Francisco. "Otherwise why would they not just bundle it into the revision for the next period?" The Canadian dollar, which was generally stronger against most other major currencies, closed at C$1.0917 to the greenback, or 91.60 U.S. cents. That was slightly stronger than Tuesday's finish of C$1.0922, or 91.56 U.S. cents. Sahota said the loonie would likely have weakened closer to C$1.0950, or tried to drop through C$1.0980, if it weren't for the unexpected news on the job figures. "The risk is people are on the optimistic side of things," he said. The currency has held mainly within a relatively narrow range of C$1.0877 to C$1.0986 over the last 10 sessions. "We've had all these currencies stuck in some fairly tight ranges ... and that's kind of continuing," said Camilla Sutton, chief currency strategist at Scotiabank. "A lot of traders are quite focused on what Friday's employment release will really mean and what the error is." The Canadian dollar was little changed for much of the session, but got an early lift from an unexpectedly flat U.S. retail sales report for July. That indicated a moderation in consumer spending early in the current quarter and pressured the U.S. dollar. Retail sales, which account for a third of U.S. consumer spending, had the weakest reading since January in July and could leave the U.S. Federal Reserve in no rush to start hiking interest rates. In Canada, data showed that home resale prices rose in July and that the pace of 12-month home price appreciation accelerated. Canadian government bond prices were higher across the maturity curve, with the two-year bond up 3 Canadian cents to yield 1.070 percent and the benchmark 10-year bond rising 42 Canadian cents to yield 2.069 percent. (Reporting by Solarina Ho; Editing by Nick Zieminski; and Peter Galloway)
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