CANADA FX DEBT-C$ jumps on robust domestic jobs report

Fri Dec 4, 2009 8:06am EST
 
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 * Canadian dollar up at 95.57 U.S. cents
 * Bond prices lower across the curve
 By Jennifer Kwan
 TORONTO, Dec 4 (Reuters) - The Canadian dollar shot higher
on Friday after a report showed Canada's economy created more
jobs than expected in November and the unemployment rate fell,
suggesting a recovery is in the making.
 Statistics Canada reported on Friday a net employment gain
of 79,000 in November, beating analysts expectations of a
15,000 gain. The unemployment rate edged lower to 8.5 percent
from 8.6 percent in October. Analysts had expected a rise to
8.7 percent. [ID:nN04141170]
 Following the release of the data, the Canadian currency
rose to as high as C$1.0458 to the U.S. dollar, or 95.62 U.S.
cents.
 "Obviously (it's) a very strong Canadian employment report,
well surpassing expectations," said Camilla Sutton, currency
strategist at Scotia Capital. "The Canadian dollar has
strengthened on the back of it."
 Market watchers also said the report's details were strong,
with full-time employment rising by 39,000, and some 40,000
were added to part-time payrolls. The job market was strongest
in the services sector, with the largest growth in education,
though employment changed little.
 At 7:47 a.m. (1247 GMT), the Canadian dollar was C$1.0464
to the U.S. dollar, or 95.57 U.S. cents, up from Thursday's
finish at C$1.0547 to the U.S. dollar, or 94.81 U.S. cents.
 Investors now await U.S. November jobs data due at 8:30
a.m. Analysts polled by Reuters forecast that U.S. payrolls
likely shrank by 130,000 in the month, compared with a decline
of 190,000 in October.
 BOND PRICES SAG
 Canadian bond prices were lower across the curve following
the data, but the selling began even before the release of the
job's report with investors more comfortable with the notion
that the Bank of Canada may raise rates before the U.S. Federal
Reserve, said Mark Chandler, fixed income strategist at RBC
Capital Markets.
 "You can make the assumption that there was already some
position for this sort of event ahead of it," he said.
 The two-year government bond CA2YT=RR was down at
C$100.14 to yield 1.178 percent, while the 10-year bond
CA10YT=RR slipped 24 Canadian cents to C$118.81 to yield
3.881 percent.
 (Reporting by Jennifer Kwan; Editing by Padraic Cassidy)
 ((jennifer.kwan@thomsonreuters.com; +1 416 941 8178; Reuters
Messaging: jennifer.kwan.reuters.net@reuters.com))  
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FOR CANADIAN MARKETS NEWS, CLICK ON CODES IN BRACKETS:
Canadian dollar and bonds report....[CAD/][CA/]
TSX market report..........[.TO]
Headlines from global forex markets ...[FXNEWS]
Bank of Canada weekly t-bill auction...[CA/BIL]
Bank of Canada securities auctions.....[CA/AUC]
Bank of Canada interest rate story.....[CA/INT]
Reuters monthly Canadian dollar poll..FOREXPOLL33 [CAD/POLL]
Canadian interest rate poll...........[CA/POLL]
Reuters G7 quarterly economy poll....[ECILT/CA]
Weekly economic data poll......[ECI/CA][ECI/CI]
Reuters global stocks poll (Canada)...EQUITYPOLL5 [EPOLL/CA]
Top News: Canada ......[TOP/CAN]
Today in Canada.......[CA/DIARY]
Canadian debt and money news ....[D-CAN][M-CAN]
FOR CANADIAN MARKETS DATA, CLICK ON CODES IN BRACKETS:
Real-time Canadian economic RICS.......ECONCA
Canadian dollar quote............CAD=CAD=D3
Canadian bonds quote..CDBN<0#CABMK=>CABONDT
Canadian money market quote...CDMN<0#CAMMKT=>
Canada-Treasury spread rates........<CA/SPREAD>
Canadian Debt and Forex speed guide...........<CA/DEBT><CAD/1>
Canadian Equities speed guide.......<CA/EQUITY>
S&P/TSX Composite index ...............GSPTSE
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  Xetra DAX..............GDAXI  Frankfurt market stories[.F]
  CAC-40...FCHI  Paris market stories...[.PA]
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