CANADA FX DEBT-C$ rallies after surprising jump in Canadian jobs

Fri Jan 4, 2013 9:40am EST
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* C$ at C$0.9858 versus US$, or $1.0144

* Strong Canada jobs data boosts currency

* Subdued hiring in U.S. limits gains

By Alastair Sharp

TORONTO, Jan 4 (Reuters) - The Canadian dollar gained sharply against its U.S. counterpart on Friday after Canada added a surprisingly robust 39,800 jobs in December, but the stronger move was hindered by a relatively subdued rate of hiring in the United States.

Canada defied expectations with the outsized gains, all of which came in full-time jobs and mostly in the private sector.

Meanwhile, the pace of hiring by U.S. employers eased slightly last month.

"The U.S. data are a slight disappointment," said Doug Porter, deputy chief economist at BMO Capital Markets. "If we had a combination of both a strong Canada and strong U.S., the Canadian dollar would be absolutely flying right now."

At 9:15 a.m. (1415 GMT) the Canadian dollar was trading at C$0.9858 to the greenback, or $1.0144, compared with C$0.9880, or $1.0121, at Thursday's North American close. It was at C$0.9910 just before the dual jobs data were released.   Continued...