CANADA FX DEBT-C$ gains on U.S. data; revised domestic jobs data in focus
* Canadian dollar at C$1.0903 vs US$, or 91.72 U.S. cents * Bond prices higher across the maturity curve (Adds strategist comment, updates prices to close) By Alastair Sharp TORONTO, Aug 14 (Reuters) - The Canadian dollar gained 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 loonie, as Canada's currency is colloquially known, could strengthen further on Friday if an unprecedented revision to July employment data shows more jobs were created than first thought, one strategist said. The July version of Canada's market-moving jobs report contained an error and must be restated, the country's main statistics agency said on Tuesday. The initial report showed the economy added just 200 jobs last month, far fewer than expected. "Because it was so out of line on the downside my guess would be that it (the revision) has to be up, it was such a poor report, especially on the full-time jobs," said Adam Button, a currency analyst at ForexLive in Montreal. Given that assumption, Button said the currency looks cheap at current levels and would still be attractive at C$1.08. "We took a run at C$1.10 on the poor (initial) jobs data and couldn't get through. To me, that says the weakness in the Canadian dollar is probably done for August," he said. The Canadian dollar, was last trading at C$1.0903 to the U.S. dollar, or 91.72 U.S. cents. That was stronger than Wednesday's close of C$1.0917, or 91.60 U.S. cents. It had traded in the mid-C$1.06 range in early July but had weakened steadily since then before making the move on C$1.10 last week. The U.S. jobless claims data on Thursday followed unexpectedly flat U.S. retail sales figures a day earlier, which came in with the weakest reading since January. "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. Investors will also digest other Canadian data on Friday in assessing the health of the domestic economy, with existing home sales and manufacturing sales data both on tap. Canadian government bond prices were higher across the maturity curve, with the two-year up 1.3 Canadian cents to yield 1.063 percent, and the benchmark 10-year climbing 21 Canadian cents to yield 2.052 percent. (Additional reporting by Solarina Ho; Editing by Peter Galloway and James Dalgleish)
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