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