CANADA FX DEBT-C$ edges higher in thin market

Fri Jul 3, 2009 8:00am EDT
 
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  TORONTO, July 3 (Reuters) - The Canadian dollar rose
against the greenback on Friday morning in thin trading with
the U.S. markets closed for a holiday, extending slim gains the
previous session on weak U.S. jobs data.
  The Canadian dollar finished slightly higher against the
greenback on Thursday, but well off its session peaks, as a
gloomy U.S. jobs report dimmed optimism about the pace of
economic recovery and dulled risk appetite.
  George Davis, chief technical strategist at RBC Capital
Markets, said the Independence Day holiday in the United States
on Friday meant little fresh direction for currency traders.
 "I don't think it's linked to anything in particular in
terms of equities and commodities," he said of the currency's
move slightly higher. "I think it's more limited to the deal
flow that we've seen in the overnight session and the general
lack of liquidity."
  At 7:34 a.m. (1134 GMT), the Canadian dollar was at
C$1.1587 to the U.S. dollar, or 86.30 U.S. cents, up from
Thursday's finish at C$1.1623 to the U.S. dollar, or 86.04 U.S.
cents.
 The currency rose even as oil prices CLc1 stagnated and
global equity markets sagged. Oil, a key Canadian export, was
little changed after slipping earlier on lingering concerns
about a grim U.S. jobs picture in the previous session
[ID:nSYD475678], while global equity markets were also lower.
[MKTS/GLOB]
  Weaker stocks usually signal risk aversion, which often
hurts the Canadian dollar; softer oil prices usually hurts the
currency as well.
  Canadian bond prices were mostly higher across the curve
on Friday, largely due to lingering effects of Thursday's move
higher following the jobs reading south of the border.
 (Reporting by Jennifer Kwan; Editing by Frank McGurty)