CANADA FX DEBT-C$ falls as commodities drop, greenback climbs
* Canadian dollar down at 94.39 U.S. cents
* Bond prices flat to higher across curve
TORONTO, Dec 7 (Reuters) - The Canadian dollar fell against the U.S. currency on Monday morning, pulled down by weak commodity prices and as the greenback gained on investors expectations U.S. interest rates could soon rise.
The dollar hit a five-week high against a currency basket on Monday, extending its rally from Friday when stronger-than-expected U.S. jobs data fueled speculation the Federal Reserve may consider winding down its stimulus measures sooner than had been expected. [FRX/]
"We've seen Fed fund futures starting to price in the possibility of a hike even by the middle of this year," said said Matthew Strauss, senior currency strategist at RBC Capital Markets.
"On the back of those expectations following the job numbers the U.S. dollar is really benefiting."
The data showed U.S. employers cut a far fewer-than-expected 11,000 jobs in November, well below expectations of a 130,000 loss, while the unemployment rate fell to 10 percent. [ID:nN04320079]
At 7:43 a.m. (1243 GMT), the Canadian dollar was at C$1.0594 to the U.S. dollar, or 94.39 U.S. cents, down from Friday's finish at C$1.0579 to the U.S. dollar, or 94.53 U.S. cents.
The broad-based U.S. dollar strength was also due to weak equity markets down and lower oil and gold prices, key Canadian exports, added Strauss.
U.S. oil fell to below $75 a barrel on Monday due in part to a stronger U.S. dollar, while gold prices were also lower. [O/R] [USD/] [GOL/]
Canadian bond prices were flat to higher across the curve, tracking U.S. Treasuries which steadied after Friday's sell-off on the jobs data. [US/] (Editing by Theodore d'Afflisio)
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