CANADA FX DEBT-C$ flat, bonds rise after jobless claims

Thu Feb 4, 2010 8:48am EST
 
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 * C$ slips to 94.06 U.S. cents
 * Bonds higher on eurozone debt concerns, jobless claims
 TORONTO, Feb 4 (Reuters) - The Canadian dollar stayed flat
against the U.S. currency on Thursday, remaining within its
recent trading band, as market players await Friday's job data
and digest fresh credit worries on some euro zone countries.
 At 8:35 a.m. (1335 GMT), the Canadian dollar was at
C$1.0632 to the U.S. dollar, or 94.06 U.S. cents, down from
C$1.0624, or 94.13 U.S. cents, at Wednesday's close. It has
moved in a C$1.0597-C$1.0647 range so far on Thursday.
 "The market is still within its recent ranges but near the
peak of U.S. dollar strength against most currencies," said
John Curran, senior vice president at CanadianForex, a
commercial foreign exchange dealing firm. "Tomorrow's numbers
are going to be the focal point of the market."
Strong U.S. data this week supported this view ahead of key
non-farm payrolls numbers due on Friday, even as U.S. jobless
claims unexpectedly rose last week.
 Market players also expect a net gain of jobs in Canada.
ECON[ID:nN01230910]
 Curran said eurozone concerns were also "adding to the
fray" of deteriorating sentiment.
 Worries over Spain and Portugal have increased as investors
speculate the two countries may face similar problems over
budget deficits and debt as Greece. [ID:nLDE6121AC]
 These concerns helped lift the safe-haven U.S. dollar to a
six-month high versus a currency basket. [FRX/]
 The other key agenda item for Canadian markets on Thursday
may be a speech by Bank of Canada Governor Mark Carney, who is
speaking to the Winnipeg Chamber of Commerce at 1:45 p.m.
 Canadian bonds edged higher across the curve as European
debt issues prompted investors to park cash in safer assets
such as bonds.
 Canadian government debt, like U.S. Treasuries, added to
gains after the surprise increase in weekly jobless claims,  
which pointed to a labor market still under stress even as the
economy grows.  [ID:nN03175869]
 The two-year bond CA2YT=RR was up 10 Canadian cents at
C$100.40 to yield 1.302 percent, while the 10-year bond
CA10YT=RR gained 27 Canadian cents to C$102.82 to yield 3.394
percent.
 (Reporting by Ka Yan Ng; Editing by Theodore d'Afflisio)