CANADA FX DEBT-C$ eases, bonds up, caution ahead of jobs data

Thu Aug 6, 2009 8:17am EDT
 
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 * C$ eases, expected to trade in narrow range
 * Bond prices up across curve after BoE raises QE program
 * Canadian, U.S. jobs data awaited
 By Ka Yan Ng
 TORONTO, Aug 6 (Reuters) - The Canadian dollar eased versus
the U.S. dollar on Thursday morning as the market awaited key
jobs data for further evidence of economic revival.
 After topping out overnight at C$1.0676 to the U.S. dollar,
or 93.67 U.S. cents, the Canadian dollar has since drifted
lower and was expected to stay within a fairly narrow range
ahead of Friday, when it will get a double serving of jobs data
from Canada and the United States.
 At 7:55 a.m. (1155 GMT), the Canadian unit was at C$1.0726
to the U.S. dollar, or 93.23 U.S. cents, down from C$1.0701 to
the U.S. dollar, or 93.45 U.S. cents, at Wednesday's close.
 "The market is just on hold for upcoming employment
reports. We could get some action depending on what claims do
but a more dominant trend will emerge on Friday once we get a
reading on both the Canadian and U.S. jobs reports," said Paul
Ferley, assistant chief economist at Royal Bank of Canada.
 Data on tap for Thursday includes Canadian building permits
figures for June, and the latest U.S. weekly data on first-time
claims for jobless benefits, both which may have a short-lived
impact on currency markets ahead of the marquee monthly jobs
statistics.
 Markets expect Statistics Canada to report net job losses
in July of 17,500, pushing the unemployment rate to an 11-year
high of 8.8 percent. [ID:nN05250302]
 In the previous session, Canada's dollar erased an early
slide and closed higher versus the greenback as hopes for
improvement in the global economy helped to ignite greater
appetite for riskier assets.
 Canadian bond prices were higher across the curve, tracking
U.S. Treasuries and European bond markets, after the Bank of
England raised its quantitatitve easing total to an
unexpectedly large 175 billion pounds. [ID:nL6430949]
 But caution remained ahead of Friday's important jobs
figures and prices rose a bit after falling the last two
sessions.
 The two-year Canadian bond edged up 2 Canadian cents to
C$99.06 to yield 1.465 percent, while the 10-year bond gained
20 Canadian cents to C$101.50 to yield 3.567 percent.
 The 30-year bond rose 25 Canadian cents to C$115.70 to
yield 4.053 percent. In the United States, the 30-year Treasury
yielded 4.520 percent.
 (Reporting by Ka Yan Ng, Editing by Chizu Nomiyama)