CANADA FX DEBT-C$ turns lower as equities and data weigh

Thu Oct 1, 2009 11:51am EDT
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 * C$ at C$1.0769 to the US$, or 92.86 U.S. cents
 * Focus on Friday's U.S. nonfarm payrolls for September
 * Bond prices remain higher across the curve
 By Frank Pingue
 TORONTO, Oct 1 (Reuters) - Canada's dollar was lower versus
the greenback on Thursday as a slide in equities and weak U.S.
economic data combined to shake the currency of gains made
earlier in the session.
 The turn lower in Canada's dollar came as North American
equities were down more than 1 percent after U.S. data showed a
weak labor market last week and below-forecast manufacturing
sector growth in September, which could hamper the nascent
economic recovery. [ID:nN01395512]
 The data dragged the Canadian unit as low as C$1.0774 to
the U.S. dollar, or 92.82 U.S. cents, down from an earlier high
of C$1.0672 to the U.S. dollar, or 93.70 U.S. cents.
 By 11:35 a.m. (1535 GMT), the Canadian unit was at C$1.0769
to the U.S. dollar, or 92.86 U.S. cents, down from Wednesday's
close at C$1.0707 to the U.S. dollar, or 93.40 U.S. cents.
 "Equity markets are down and weakening through the day and
there is just notable caution today ... with the data that came
out and the data that's expected tomorrow," said David Watt,
senior currency strategist at RBC Capital Markets.
 Friday's U.S. jobs report is expected to draw plenty of
attention from currency traders. The report is expected to show
the pace of job losses in September slowed from August, but the
jobless rate is seen rising. ECONUS
 No key Canadian economic data comes out until Tuesday when
the Ivey Purchasing Managers Index report for September is due.
That will be followed by September housing starts figures on
Thursday and the more key jobs data for September on Friday.
 G7 finance ministers and central bank chiefs meeting in
Istanbul on Saturday will try to figure out how to put into
practice the lofty promises endorsed by G20 leaders last week,
a senior Canadian finance official said. [ID:N01263572]
 Canadian bonds held higher across the curve on the surprise
jump in U.S. weekly jobless claims, while North American stocks
were pinned lower and lifted the appeal of more secure assets
like government debt.
 The two-year bond CA2YT=RR was up 8 Canadian cents at
C$99.58 to yield 1.224 percent, while the 10-year bond
CA10YT=RR gained 35 Canadian cents to C$103.95 to yield 3.269
 The 30-year bond CA30YT=RR climbed 40 Canadian cents to
C$120.00 to yield 3.822 percent.
 (Additional reporting by Ka Yan Ng; editing by Peter