Canadian dollar up over a cent, bonds rally

Fri May 9, 2008 4:55pm EDT
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By John McCrank

TORONTO (Reuters) - The Canadian dollar rose more than a cent against the U.S. dollar on Friday, a move attributed to technical factors as well as domestic jobs data, against a positive backdrop of record-setting oil prices.

Domestic bond prices rallied, playing catch-up with the larger U.S. market.

The Canadian dollar closed at C$1.0056 to the U.S. dollar, or 99.44 U.S. cents, up from C$1.0171 to the U.S. dollar, or 98.32 U.S. cents, at Thursday's close.

It was a choppy week for the currency, bouncing from C$1.02 to the U.S. dollar to parity over two days, and then back to C$1.0170 in two days, but ultimately it ended 1.4 percent higher.

"I don't think there is anything really in terms of data releases that would have spurred that level of volatility," said Gareth Sylvester, senior currency strategist at HIFX in San Francisco.

"So that would lead us to suggest it was more of a technical-style move rather than anything else," he said.

The Canadian dollar shot higher early in the session after a report showed the economy performed better than expected in April. The currency then gave back some of its gains as details of the data were digested.

The Statistic Canada report showed 19,200 jobs were created in April, while 10,000 had been expected.   Continued...

<p>A Royal Canadian Mint employee holds freshly pressed Canadian one dollar coins in Winnipeg November 14, 2007. REUTERS/Fred Greenslade</p>