CANADA FX DEBT-C$ little changed after brief gains on strong jobs data

Fri Oct 10, 2014 9:30am EDT
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* Canadian dollar at C$1.1173 or 89.50 U.S. cents
    * Bond prices mixed
    * Canadian jobs data much stronger than expected

    By Andrea Hopkins
    TORONTO, Oct 10 (Reuters) - The Canadian dollar briefly
strengthened to a session high against the greenback on Friday
on stronger-than-expected jobs data, but fell back to trade
little changed as the volatility of the data took some shine off
the numbers.
    Canada's economy added 74,100 jobs in September, well above
forecasts for a 20,000 gain, and the unemployment rate fell to a
near six-year low of 6.8 percent, Statistics Canada said on
Friday. Beyond the headline, the data was strong, with full-time
work rising 69,300 and private-sector employment up 123,600.
    "Let's put it this way, if we had seen the opposite today, I
think the Canadian dollar would have been slaughtered, but this
is clearly at least a moderate positive for the Canadian
dollar," said Doug Porter, chief economist at BMO Capital
    "I don't believe it's going to turn the tide, not with oil
prices sinking as deeply as they have, but it's a nice temporary
    The Canadian dollar firmed as high as C$1.1160 to
the U.S. dollar, or 89.61 U.S. cents before retreating to stand
unchanged from Thursday's North American session close at
C$1.1173 to the greenback, or 89.50 U.S. cents.
    Analysts said the volatility of the employment data in
recent months means the Bank of Canada won't put enough stock in
a single month of numbers to change their policy outlook.    
    "There is tremendous volatility in these employment numbers
in Canada," said Camilla Sutton, chief currency strategist at
Scotiabank. "I think really for the Canadian dollar the focus is
going to be on the broad U.S. dollar move."
    Canadian government bond prices were mixed, with the
two-year down 3 Canadian cents to yield 1.074 percent
and the benchmark 10-year up 3 Canadian cents to
yield 2.022 percent.

 (Editing by Jeffrey Hodgson and Chizu Nomiyama)