CANADA FX DEBT-C$ touches one-week low on U.S. jobs data

Fri Sep 2, 2011 11:28am EDT
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* C$ at C$0.9812 vs US$, or $1.0192

* C$ touched one-week low, but support seen

* U.S. payrolls flat in August, well below expectations

* Bonds push higher across curve; yields near August lows (Adds details, comments)

By Andrea Hopkins

TORONTO, Sept 2 (Reuters) - The Canadian dollar sank to a one-week low against the greenback on Thursday morning after the U.S. jobs report for August came in far weaker than expected, reigniting fears about a global growth slowdown and sending investors to safe-haven assets.

The U.S. dollar also weakened against key currencies such as the yen and Swiss franc [FRX] after news that U.S. employers hired no new workers last month, against expectations for a 75,000 increase in payrolls. That sent government bond prices higher and pushed stock markets into a global slump. [MKTS/GLOB]

Canada's dollar fell against all major currencies on concern about the country's link to the U.S. economy. The United States is by far Canada's largest trading partner.

"Overall it's a weak U.S. dollar story," said Camilla Sutton, chief currency strategist at Scotia Capital.   Continued...