CANADA FX DEBT-C$ steady as focus turns to jobs reports

Thu Dec 4, 2014 9:36am EST
 
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* Canadian dollar at C$1.1362 or 88.01 U.S. cents
    * Bond prices mixed across the maturity curve

    By Solarina Ho
    TORONTO, Dec 4 (Reuters) - The Canadian dollar was little
changed against the greenback on Thursday as the market paused
in anticipation of Friday's release of U.S. and Canadian
employment reports for November.
    The currency has had big swings of between half a cent and
more than a cent over the past five sessions, mostly in reaction
to a plunge oil prices after the Organization of the Petroleum
Exporting Countries decided not to pull back on production
despite a glut in the market. Canada is a major oil exporter.
    A less dovish statement from the Bank of Canada on Wednesday
helped prop up the Canadian dollar, but with little key economic
data until Friday's employment reports, market participants were
holding off making big bets.
     "It does not appear that we're getting much in the way of
independent direction at this point from energy," said Mark
Chandler, head of Canadian fixed income and currency strategy at
Royal Bank of Canada.
    "I would argue ... the better data that we've seen, firmer
bank stance, that may have offset some of the negative in energy
and it's hard to discern now the balance between the two."
    At 9:02 a.m. (1402 GMT), the Canadian dollar was at
C$1.1362 to the greenback, or 88.01 U.S. cents, steady from
Wednesday's close at C$1.1366, or 87.98 U.S. cents.
    "We're trapped at around these levels mostly as people await
the job reports," said Chandler, noting that the U.S. labor
report may have a bigger influence on the loonie on Friday.
    In Canada, economists and analysts expect 5,000 new jobs to
have been added in November and for the unemployment rate to
have crept up to 6.6 percent from 6.5 percent.
    Chandler said a slight pullback was expected after the
extraordinarily robust job gains of the previous two months.
    Canadian government bond prices were mixed across the
maturity curve, with the two-year up half a Canadian
cent to yield 1.021 percent and the benchmark 10-year
 down 5 Canadian cents to yield 1.945 percent.

 (Reporting by Solarina Ho; Editing by Peter Galloway)