CANADA FX DEBT-C$ rallies to 8-week high, helped by U.S. data
* C$ closes at C$0.9587, or $1.0431
* Optimism grows with U.S. jobs data, Trichet comments
* Commodity prices help drive gains
* Bonds mostly weaker, Canada outperforms
By Trish Nixon
TORONTO, July 7 (Reuters) - Canada's dollar strengthened against the greenback on Thursday, touching its highest level in more than eight weeks, as risk appetite improved on encouraging U.S. employment data and euro zone developments.
A sharp rise in U.S. private-sector jobs raised expectations that Friday's government report on June payrolls will provide more evidence of an improving labor market. [ID:nN1E7660BF]
Separately, European Central Bank President Jean-Claude Trichet said the bank would relax rules and keep providing liquidity to struggling Portugal, allaying worries about Europe's debt crisis. [ID:nLDE7660BO]
"The market took the comments from Trichet earlier as being positive, so it's more of a risk-on kind of atmosphere," said David Bradley, director of foreign exchange trading at Scotia Capital. Continued...