CANADA FX DEBT-C$ lower after Canada jobs data, eyes U.S. jobs
* C$ weaker on the day at 99.37 U.S. cents
* Canada October job gains weaker than expected
* Bonds mildly lower in muted reaction, await U.S. jobs (Adds details)
By Ka Yan Ng
TORONTO, Nov 5 (Reuters) - Canada's dollar fell to a session low against the U.S. dollar before recovering its poise in a mixed reaction after Canadian jobs data on Friday.
The Canadian dollar CAD=D4 briefly fell to a session trough of C$1.0095 to the U.S. dollar, or 99.06 U.S. cents, after Canada's economy added a mere 3,000 jobs in October, a fifth of what was expected. [ID:nSCL5ME673]
It quickly bounced back to levels it traded at before the data was published, to around C$1.0065 to the U.S. dollar, or 99.35 U.S. cents, but was still weaker compared to Thursday's close at C$1.0024 to the U.S. dollar, or 99.76 U.S. cents.
Investors were encouraged by a fall in the unemployment rate to 7.9 percent from 8 percent, as well as underlying details in the report. Analysts surveyed by Reuters had expected the economy to add 15,000 jobs in October and the unemployment rate to remain at 8.0 percent. ECONCA
"The composition is a bit more favorable than the headline implies. There's elements of strength in the report," said Paul Ferley, assistant chief economist at Royal Bank of Canada.
All the gains were in full-time jobs while part-time employment fell for the third straight month. Notably, private sector hiring outpaced that of the public sector suggesting a more deeply entrenched recovery.
"On the headline number (the Canadian dollar) shot weaker but that was generally reversed," said Sacha Tihanyi, currency strategist at Scotia Capital, noting that the Canadian dollar was under pressure because U.S. dollar strength was in such "heavy effect today."
Canadian bonds were mildly lower in muted reaction following the domestic data, as market players were on guard for U.S. jobs data for October later on Friday.
Economists polled by Reuters expect 60,000 jobs were created in U.S. payrolls in October after 95,000 were lost in September, while the unemployment rate is expected to remain sticky at 9.6 percent. [ID:nN02101041]
At 7:50 a.m., the Canadian dollar was at C$1.0063 to the U.S. dollar, or 99.37 U.S. cents, down 0.4 percent from the previous session.
The two-year bond CA2YT=RR was off 5 Canadian cents to yield 1.436 percent, while the 10-year bond CA10YT=RR slid 20 Canadian cents to yield 2.838 percent.
(Reporting by Ka Yan Ng, Editing by Chizu Nomiyama )
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