CANADA FX DEBT-C$ weaker after poor U.S. jobs data

Fri Oct 2, 2009 9:14am EDT
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 * Canadian dollar touches session low of 91.23 U.S. cents
 * Worse-than-expected U.S. jobs data hits currency
 By Jennifer Kwan
 TORONTO, Oct 2 (Reuters) - The Canadian dollar sank against
the U.S. dollar on Friday morning, touching a session low after
a weaker-than-expected U.S. jobs report fanned worries about
the global economic recovery.
 U.S. employers cut a deeper-than-expected 263,000 jobs in
September, lifting the unemployment rate to 9.8 percent,
according to a government report on Friday. Analysts polled by
Reuters had expected non-farm payrolls to drop 180,000 in
September.  [ID:nN01277999]
 "There was a lot of shock and awe over the original
headline. Obviously, much worse than expectations," said Steve
Butler, director of foreign exchange trading at Scotia
 The data dragged the commodity-linked Canadian unit as low
as C$1.0961 to the U.S. dollar, or 91.23 U.S. cents. However,
by 8:55 a.m. (1255 GMT), the Canadian unit came off its low
levels and was at C$1.0925 to the U.S. dollar, or 91.53 U.S.
cents. On Thursday, it closed at C$1.0845 to the U.S. dollar,
or 92.21 U.S. cents.
 "We initially saw a big knee-jerk reaction but I think
things are coming back a little bit because there was a lot of
bearishness built into these numbers," said Butler.
 Other factors weighing on the Canadian unit included weak
oil CLC1, a key Canadian export, and gold prices, as well as
sliding global equity markets. [O/R] [GOL/]
 Canadian bonds were mostly higher, following the big U.S.
Treasury market, where prices rallied after the weak September
payroll data. [US/]
 (Editing by Jeffrey Hodgson)