CANADA FX DEBT-C$ falls as jobless claims outweigh oil

Thu Dec 3, 2009 9:50am EST
 
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 * Canadian dollar falls to 94.83 U.S. cents
 * Bond prices lower after jobless claims data
 * Eye on Friday's U.S., Canadian jobs reports
 By Ka Yan Ng
 TORONTO, Dec 3 (Reuters) - Canada's currency fell on
Thursday morning as stronger-than-expected weekly U.S. jobless
claims data boosted the greenback and outweighed the support
provided by rising oil prices.
 The uptick in oil prices helped push the Canadian dollar in
the overnight session to as high as C$1.0464 to the U.S.
dollar, or 95.57 U.S. cents.
 But the currency eased as investors digested the weekly
U.S. jobless claims data as well as comments from European
Central Bank President Jean-Claude Trichet, who said a
forthcoming refinancing operation for banks would be the last.
[nECBNEWS] [FRX/]
 Weekly data showed the number of U.S. workers filing for
first-time jobless benefits slipped in the latest week, adding
to hopes the job market is improving and allaying jitters from
Wednesday's worse-than-expected private-sector jobs figures.
 At 9:35 a.m. (1435 GMT), the Canadian dollar was at
C$1.0545 to the U.S. dollar, or 94.83 U.S. cents, down from
C$1.0502 to the U.S. dollar, or 95.22 U.S cents, in the
previous session.
 "There's a lot of choppy behavior in the currency markets
right now as the market deciphers what Trichet is saying," said
Jack Spitz, managing director of foreign exchange at National
Bank Financial.
 "Theoretically, the Canadian dollar should be marginally
stronger in conjunction with a bid to risk, but the U.S. dollar
itself is coming back on the better than expected weekly jobs
claims numbers," Spitz said.
 Canada is due to report November employment data on Friday,
which is expected to show more encouraging signs of an economy
in repair and a gain of 15,000 jobs. ECONCA  [ID:nN0236002]
 Canadian bond prices were weaker as risk appetite shot
higher on the jobless claims news.
 The two-year government bond CA2YT=RR fell 8 Canadian
cents to C$100.17 to yield 1.166 percent, while the 10-year
bond CA10YT=RR fell 23 Canadian cents to C$103.74 to yield
3.288 percent.
 (Additional reporting by Scott Anderson; editing by Peter
Galloway)
 ((kayan.ng@thomsonreuters.com; Reuters Messaging:
kayan.ng.reuters.com@reuters.net; 416-941-8109))
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