CANADA FX DEBT-C$ hits 2 1/2-month high on jobs data hopes

Thu Jan 7, 2010 9:30am EST
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* C$ touches 97.17 U.S. cents, highest since Oct 20

* Helped by hopes for strong jobs reports on Friday

* Bonds fall across curve

By Jennifer Kwan

TORONTO, Jan 7 (Reuters) - The Canadian dollar climbed against the U.S. dollar on Thursday, lifted by market expectations that a pair of jobs reports in Canada and U.S. on Friday will bolster recovery hopes.

The unit shot as high as C$1.0291 to the U.S. dollar, or 97.17 U.S. cents, largely driven up by bullish market sentiment, said Steve Butler, director of foreign exchange trading at Scotia Capital.

"For the time being, Canada can do no wrong. We've seen dollar/Canada continue to grind lower," he said.

A main factor behind the rosy sentiment is market expectation that jobs reports due on Friday morning could provide further clarity the economic recovery is firmly underway. [ID:nN0595130]

"The market is expecting good news out of the jobs data both in the U.S. and Canada tomorrow, and it's that expectation that is keeping Canada outperforming," said Butler.   Continued...