2 Min Read
* C$ at C$0.9993 to US$, or $1.0007 * U.S. jobs data due at 8:30 a.m. (1330 GMT * C$ at fresh 13-month low vs euro By Alastair Sharp TORONTO, Feb 1 (Reuters) - The Canadian dollar weakened on Friday, ahead of a U.S. jobs report which will be closely scrutinized for clues on the economic health of Canada's main trading partner and for what it means for U.S. monetary policy. The U.S. non-farm payrolls report is expected to show modest growth in January, supporting a view that the U.S. economy continues to recover despite a surprise contraction in economic growth in the final three months of 2012. The employment report is central as the U.S. Federal Reserve has tied its monetary stance to improvement in the labor market. Shaun Osborne, chief currency strategist at TD Securities, said he was braced for less-than-dazzling news. "The trend for U.S. data releases recently has been towards disappointment relative to expectations and we are a little bit below consensus so we're expecting perhaps a softer number would be a modest negative for the Canadian dollar," he said. At 7:52 a.m. (1252 GMT) the Canadian dollar was trading at C$0.9993 to the greenback, or $1.0007, compared with C$0.9973, or $1.0027, at Thursday's North American close. The currency hit a fresh 13-month low of C$1.3669 against the euro, as the single currency recorded broad gains on a positive outlook for the euro zone. While the Canadian data calendar is sparse, other U.S. data on tap includes manufacturing and construction spending, and vehicle sales. The price of a two-year Canadian government bond was unchanged to yield 1.163 percent, while the benchmark 10-year bond fell 19 Canadian cents to yield 2.010 percent.