4 Min Read
* Lower oil prices adding to pressure on Canadian dollar
* Traders awaiting Friday's key Canadian jobs data
* Bonds mostly flat given lack of data to spark a move
By Frank Pingue
TORONTO, Nov 6 (Reuters) - The Canadian dollar was little changed versus the U.S. dollar on Thursday morning as traders shied away from taking big positions ahead of the release of Canadian jobs data for October on Friday.
Bond prices were also relatively flat across the curve as a greater sense of calm in equity markets this week has crimped investor demand for more secure government debt.
At 9:40 a.m. (1540 GMT), the Canadian unit was at C$1.1689 to the U.S. dollar, or 85.55 U.S. cents, down from C$1.1680 to the U.S. dollar, or 85.62 U.S. cents, at Wednesday's close.
Lower commodity prices took part of the blame for the dip in the Canadian dollar, but it was being called more of a flow-driven move since it paled in comparison to the sharp swings it has experienced in recent weeks.
"Compared to the kind of volatility we've experienced in recent weeks, this is a minor move and that's why I believe it's just an order or two going through the market," said Matthew Strauss, senior currency strategist at RBC Capital Markets.
The Canadian dollar is not expected to make any significant moves during the session with the looming jobs data due out at the end of the week on the minds of most traders.
After an unexpected surge of 106,900 new jobs in September, analysts surveyed by Reuters expect a decline of 10,000 in October, and for the unemployment rate to rise to 6.2 percent from 6.1 percent.
Data on Thursday that showed Canadian building permits rose unexpectedly by 13.4 percent in September did not offer any support to the Canadian currency as it is generally not viewed as a market mover.
Canadian bond prices were mostly unchanged across the curve with dealers huddling on the sidelines ahead of Friday's key employment report.
The only domestic data due out ahead of the jobs report was the Ivey Purchasing Managers Index for October due out at 10:00 a.m., but it is not a report that triggers a move in Canadian bond prices.
The Canadian overnight Libor rate LIBOR01 was 2.5000 percent, up from 2.4833 percent on Wednesday.
Wednesday's CORRA rate CORRA= was 2.2402 percent, down from 2.2439 percent on Tuesday. The Bank of Canada publishes the previous day's rate at around 9 a.m. daily.
The two-year bond was up 2 Canadian cents at C$101.57 to yield 1.967 percent. The 10-year bond decreased 18 Canadian cents to C$103.82 to yield 3.769 percent.
The yield spread between the two- and 10-year bond was 178 basis points, unchanged from the previous close.
The 30-year bond was down 30 Canadian cents at C$112.30 to yield 4.252 percent. In the United States, the 30-year Treasury yielded 4.219 percent. (Editing by Peter Galloway)