CANADA FX DEBT-C$ jumps from one-week low as risk appetite rises

Tue Feb 3, 2009 10:57am EST
 
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* C$ stages rally after dipping below 80 U.S. cents

* Greater appetite for risk fuels latest C$ gains

* Bond prices mixed ahead of Friday's key jobs data (Adds details)

By Frank Pingue

TORONTO, Feb 3 (Reuters) - Canada's dollar rose against the U.S. greenback on Tuesday, moving off a one-week low seen overnight, as early gains in stocks and unexpectedly strong U.S. housing data fueled an appetite for riskier assets.

But the rise did not cause much excitement as traders said they expect erratic moves ahead of key jobs reports due from Canada and the United States on Friday, which are both expected to show the economies continued to shed jobs in January.

"It's really just an across the board selloff in the U.S. dollar that seems to be taking on some early momentum," said Jack Spitz, managing director of foreign exchange at National Bank of Canada.

"But I think this market is subject to relatively choppy and whippy price fluctuations and the move down below (C$1.24) doesn't really negate the risk aversion tone that's likely to be the dominant bias between now and the labor numbers."

At 10:15 a.m. (1515 GMT), Canada's dollar was at C$1.2366 to the U.S. dollar, or 80.87 U.S. cents, up from Monday's close of C$1.2436 to the U.S. dollar, or 80.41 U.S. cents,   Continued...