CANADA FX DEBT-Revised July jobs data boosts Canadian dollar
* Canadian dollar at C$1.0889, or 91.84 U.S. cents * 10-year bond yield lowest since May 2013 (Adds details, quotes, updates prices) By Leah Schnurr TORONTO, Aug 15 (Reuters) - The Canadian dollar firmed against the greenback on Friday after revised data showed Canada's economy added far more jobs in July than previously reported, but the currency's rise was tempered by concerns over an escalation of tensions in Ukraine. Statistics Canada said 41,700 net jobs were created in July, exceeding economists expectations and a far cry from the 200 jobs it said were added for the month in a report last week. It withdrew the earlier report over what it described as a flaw in the way the figures had been processed. The revised jobs data, along with unexpectedly better June factory sales figures, sent Canada's loonie to its highest level against the U.S. dollar in more than two weeks, where it briefly broke through both its 100- and 200-day moving averages. But the momentum stalled after Ukraine said its forces had destroyed part of a Russian armored column that entered its territory overnight. "This is the interplay between economic fundamentals, as revised as they are, and geopolitics," said David Tulk, chief Canada macro strategist at TD Securities in Toronto. "The overarching theme is one where risk-off tends to dominate, and that unfortunately leaves Canada caught in the crossfire." The Canadian dollar ended the North American session at C$1.0889 to the greenback, or 91.84 U.S. cents, compared to Thursday's close of C$1.0903, or 91.72 U.S. cents. The loonie fell sharply last Friday following the first release of the jobs report, but it drifted higher this week to gain 0.8 percent on the week. Canadian retail sales and inflation data are the highlights of Canada's economic calendar next week, with both reports due to be released on Friday. Investors also will eye the release of the minutes from the U.S. Federal Reserve's July policy meeting on Wednesday as well as the annual gathering of central bankers and economists in Jackson Hole later in the week. "I think unfortunately it's tough to see from a Canadian perspective how we can really potentially strengthen the loonie from here, just given that the data may be on the weak side," Tulk said. "It's obviously a (U.S.) dollar story, so if the Fed sounds a little more upbeat, that could certainly have an implication." Geopolitical tensions sent Canadian government bond yields lower across the maturity curve in sympathy with a drop in U.S. Treasuries yields. The yield on the benchmark 10-year Canadian bond hit 2.016 percent, its lowest level since May 2013, while the two-year was 2-1/2 Canadian cents higher to yield 1.054 percent. (Editing by Paul Simao)
© Thomson Reuters 2017 All rights reserved.