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

Thu Dec 4, 2014 5:15pm EST
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(Updates to market close, adds fresh comment)
    * Canadian dollar at C$1.1375 or 87.91 U.S. cents
    * Bond prices higher across the curve

    By Solarina Ho
    TORONTO, Dec 4 (Reuters) - The Canadian dollar eased
slightly against the greenback on Thursday in slow trading ahead
of Friday's release of U.S. and Canadian employment reports for
    A less dovish statement from the Bank of Canada on Wednesday
helped prop up the Canadian dollar. But with little key economic
data, and despite volatile moves in other currencies, market
participants held off on making any big bets on the loonie.
    "Everything's on the move ... But USD/CAD - it's like, did
someone hit the snooze button? Was there even a Bank of Canada
announcement yesterday? Part of that is actually quite telling
from yesterday," said Amo Sahota, director at Klarity FX in San
    The central bank had reinforced expectations it will hold
off hiking interest rates until after the U.S. Federal Reserve
makes its move sometime in the middle of next year, Sahota said.
    The Canadian dollar finished at C$1.1375 to the
greenback, or 87.91 U.S. cents, marginally weaker than
Wednesday's close at C$1.1366, or 87.98 U.S. cents.
    The currency had big swings of between half a cent and more
than a cent over the previous five sessions, mostly in reaction
to a plunge in 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
    "We're trapped at around these levels mostly as people await
the job reports," said Mark Chandler, head of Canadian fixed
income and currency strategy at Royal Bank of Canada. 
    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, noting that the U.S. labor report may have a
bigger influence on the loonie on Friday, said a slight pullback
was expected after the robust job gains of the previous two
    Canadian government bond prices were higher across the
maturity curve, with the two-year up 1.5 Canadian
cents to yield 1.017 percent and the benchmark 10-year
 rising 27 Canadian cents to yield 1.909 percent.

 (Reporting by Solarina Ho; Editing by Peter Galloway and Tom