2 Min Read
* Canadian dollar at C$1.1082 or 90.24 U.S. cents * Bond prices lower across the maturity curve By Leah Schnurr TORONTO, March 7 (Reuters) - The Canadian dollar slumped against the greenback on Friday after data showed the domestic economy unexpectedly shed jobs last month, in contrast to an acceleration of jobs growth south of the border. Canada lost 7,000 jobs in February, far short of expectations for an increase of 15,000. The unemployment rate held steady at 7 percent, but the data was unlikely to give the Bank of Canada much reason to change its neutral policy stance. The report was a setback for the loonie after two sessions of strong gains that pushed it to a two-week high on Thursday. "The Bank of Canada made it clear it's data dependent, so in that context, it's natural we're seeing the Canadian dollar weaken," said Shaun Osborne, chief currency strategist at TD Securities in Toronto. "We'll probably test the C$1.11 area here over the balance of the session or the balance of the morning, we'll see if we can extend this move a little more. I think on balance we should, given the data mix we've had but I don't know that we're going to extend much higher past C$1.11, at the moment anyway." The Canadian dollar was at C$1.1082 to the greenback, or 90.24 U.S. cents, weaker than Thursday's close of C$1.0992, or 90.98 U.S. cents. The loonie hit a session low of C$1.1098 shortly after the data was released. A separate report showed Canada's trade deficit narrowed more than expected, but that silver lining was eclipsed by the employment data. Data south of the border boosted the greenback to the Canadian dollar's detriment as the U.S. added 175,000 jobs in February, beating expectations. Canadian government bond prices were lower across the maturity curve, with the two-year off 1.5 Canadian cents to yield 1.060 percent and the benchmark 10-year was down 40 Canadian cents to yield 2.552 percent.