CANADA FX DEBT-C$ ends above 98 cents for 1st time since May

Wed Aug 4, 2010 5:02pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* C$ climbs to 98.27 U.S. cents

* Bonds fall hard after U.S. data

By Ka Yan Ng

TORONTO, Aug 4 (Reuters) - The Canadian dollar closed above 98 U.S. cents for the first time since mid May on Wednesday, while bonds slid, as the latest data releases brightened the outlook for the U.S. economy.

The ADP Employment Services report indicated a job gain of 42,000 in July in the U.S. private sector, compared with expectations of 40,000, while a report by the Institute for Supply Management showed increased growth in the U.S. service sector in July. [ID:nN04224566]

"For the first time in a while some positive data out of the United States. It's been such an unabating stream of negative news," said David Tulk, senior macro strategist at TD Securities.

"That sentiment has helped underpin U.S. equities and has given some lift to riskier assets," he added.

Both reports were a bit stronger than expected, but showed job growth remains tepid. They came ahead of the much more comprehensive U.S. labor market report for July on Friday, which is a focal point for markets this week.

Canada is also set to publish July jobs data on Friday, the main domestic market event of the week, with forecasters expecting a modest gain of 15,000 jobs and a steady unemployment rate at 7.9 percent. [ID:nN30270191]   Continued...