CANADA FX DEBT-C$ retreats from 2-week high, jobs in focus

Thu Jun 3, 2010 4:59pm EDT
 
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* C$ dips to 96.04 U.S. cents

* Bond prices mixed

* Focus on Friday's Canadian, U.S. jobs data (Updates to close)

TORONTO, June 3 (Reuters) - The Canadian dollar backpedaled from a two-week high against the U.S. dollar on Thursday as market players reduced risky positions ahead of Friday's double serving of jobs reports from Canada and the United States.

The currency CAD=D4 began the session firmer, hitting its highest level since May 18 at C$1.0333 to the U.S. dollar, or 96.78 U.S. cents, as oil prices rose and global equity markets rallied on growing investor risk appetite.

It closed at C$1.0412 to the U.S. dollar, or 96.04 U.S. cents, down from Wednesday's close of C$1.0384 to the U.S. dollar, or 96.30 U.S. cents.

"It's following risk flows today. We're stuck in a broader range for the Canadian dollar," said Tyson Wright, senior foreign exchange trader at Custom House, a currency services firm.

Canada's dollar absorbed tepid May U.S. retail sales data on Thursday as well as reports that the U.S. added private-sector jobs in May and that jobless claims dipped in the latest week. But the main course is the U.S. May jobs report on Friday, which may provide vital evidence on the state of economic recovery. [ID:nN0360959]

According to a Reuters poll, U.S. nonfarm payrolls probably recorded a fifth straight month of gains in May, but survey respondents said more than two-thirds of the projected 513,000 jobs will be temporary hires for the U.S. census. [ID:nN01175887] [ID:nN02176933] ECONUS   Continued...