CANADA FX DEBT-C$ hits to 3-1/2 year high on strongs jobs data

Fri Apr 8, 2011 8:13am EDT
 
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 * C$ hits high of C$0.9526 vs US$, or $1.05
 * Bond prices lower across curve, track U.S. Treasuries
 * Canada loses jobs in March, full-time numbers jump
  By Claire Sibonney
  TORONTO, April 8 (Reuters) - The Canadian dollar hit its
strongest level in more than three years against the U.S.
dollar on Friday, after traders digested the positive details
of an initially disappointing jobs report.
 The currency CAD=D4 touched a high of C$0.9526 to the
U.S. dollar, or $1.05, its strongest since late 2007.
 It rebounded from a slightly weaker position taken
immediately after the data given the weaker than expected
headline number.
 Canada's job market lost 1,500 jobs in March,  removing any
urgency for the central bank to raise interest rates right
away, however employers added some 90,600 full-time workers to
their payrolls. [ID:nN08228750]
 "It's actually a decent report, almost solely from the
strength of the full time jobs gain," said Mark Chandler, head
of fixed income and currency strategy at RBC Capital Markets.
 "It's certainly helping to underpin the currency."
 The Canadian dollar was already firmer heading into the
data, breaking the 3 1/2 year high mark multiple times before
the report's release.
 Surging oil and gold prices remained key drivers of the
commodity-linked currency, while a greenback under pressure by
a looming budget deadlock in the U.S. and risk appetite in
equity markets also lent support. .DXY [O/R] [GOL/]
[MKTS/GLOB]
 At 7:56 a.m. (1156 GMT), the currency stood at C$0.9538, or
$1.048, up from Thursday's close of C$0.9585 to the U.S.
dollar, or $1.0433, when it ended higher for the eighth time in
the past nine sessions.
 BONDS LOWER, LITTLE MOVED BY DATA
 Canadian government bond prices were lower across the
curve, tracking a similar move in U.S. Treasuries.
 The employment numbers, the last data available to the Bank
of Canada ahead of its April 12 interest rate announcement,
caused minimal response, noted Chandler.
 The central bank is expected to make its first interest
rate hike of 2011 in July, as it balances rising economic
growth against tame inflation and a high-flying Canadian
dollar, according to a Reuters poll on Thursday.
 The two-year bond CA2YT=RR was off 4 Canadian cents to
yield 1.909 percent, while the 10-year bond CA10YT=RR was
down 32 Canadian cents to yield 3.477 percent.
  ( Reporting by Claire Sibonney, Editing by W Simon )