CANADA FX DEBT-C$ strengthens after weak U.S. data
* Canadian dollar at C$1.0901 vs US$, or 91.73 U.S. cents * Bond prices higher across the maturity curve By Solarina Ho TORONTO, Aug 14 (Reuters) - The Canadian dollar firmed against its U.S. counterpart on Thursday, with the greenback under some pressure after data showed the number of Americans filing new unemployment benefits rose more than expected last week. The U.S. jobless claims data followed unexpectedly flat U.S. retail sales figures on Wednesday, which came in with the weakest reading since January. With little domestic economic news to drive it, the Canadian dollar has been taking its cues from south of the border. "We have generally had a weaker U.S. dollar, that is largely behind the story on what we've seen on Canada," said Mark Chandler, head of Canadian fixed income and currency strategy at Royal Bank of Canada. The Canadian dollar, which was underperforming other major currencies on Thursday, was trading at C$1.0901 to the U.S. dollar, or 91.73 U.S. cents. That was stronger than Wednesday's close of C$1.0917, or 91.60 U.S. cents. Traders remained cautious ahead of Friday's restatement of Canada's July jobs data. Statistics Canada said the original report, released last Friday, which showed the economy added just 200 jobs last month, contained an error and must be restated. "When (the error) was first announced, you did get a slight increase in the Canadian dollar and also a similar movement in bond markets," Chandler said. "Essentially all we did was rewind, in some sense, the reaction to when (the jobs data) first came out." On average, economists had expected 20,000 new jobs in July. Investors will also eye other Canadian data on Friday for direction, including existing home sales, and manufacturing sales, which are expected to increase 0.4 percent. Canadian government bond prices were higher across the maturity curve, with the two-year up 1.5 Canadian cents to yield 1.062 percent, and the benchmark 10-year climbing 16 Canadian cents to yield 2.058 percent. (Reporting by Solarina Ho; Editing by Peter Galloway)
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