3 Min Read
(Corrects the bullet points and the first and fifth paragraphs to remove references to U.S. private-sector jobs data being better than expected.)
* C$ rises to C$0.9758 vs US$, or $1.0248
* Bond prices mixed across curve
* Canada economy shrinks in Q2, first time since recession
* Canada's June GDP shows rebound from May
* U.S. private sector adds 91,000 jobs in August (Updates with details, commentary)
By Claire Sibonney
TORONTO, Aug 31 (Reuters) - The Canadian dollar ticked up against the U.S. dollar on Wednesday morning after a mixed reading on domestic growth figures was offset by modest growth in U.S. private employment data, and stronger U.S. equities.
In Canada, simultaneous reports showed the Canadian economy shrank in the second quarter -- the first quarterly fall since the 2008-09 recession -- largely due to temporary factors such as the huge earthquake and tsunami in Japan in March. However, growth in June rebounded after falling in May. For more see [ID:nN1E77U099].
"There may have been a knee-jerk reaction, but I'm not seeing any long-lasting effect," said Sal Guatieri, senior economist at BMO Capital Markets.
"The report does not carry many implications for monetary policy, even though quarterly growth came in a little weaker than expected, June GDP came in a little better than expected, raising hopes that the economy bounced back in the third quarter."
The currency also picked up after a private report showed modest growth of 91,000 jobs in U.S. private jobs in August, soothing some worries about a recession, and as U.S. stock futures rose on stimulus hopes. [ID:nEAPAV0EH0]
At 9:14 a.m. (1314 GMT), the Canadian dollar CAD=D4 stood at C$0.9758 to the U.S. dollar, or $1.0248, up from Tuesday's North American session close at C$0.9782 to the U.S. dollar, or $1.0223.
The currency was little changed going into the domestic reports, and briefly turned negative following the disappointing second-quarter headline.
Canadian bond prices were mixed across the curve.
The interest-rate sensitive two-year bond CA2YT=RR was up 15 Canadian cents to yield 1.020 percent, while the 10-year bond CA10YT=RR slipped 5 Canadian cents to yield 2.408 percent. (Editing by James Dalgleish)