CANADA FX DEBT-C$ gains nearly a cent on robust domestic jobs report

Fri Nov 7, 2014 9:40am EST
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* Canadian dollar at C$1.1364 or 88 U.S. cents
    * Bond prices mixed across the maturity curve

    TORONTO, Nov 7 (Reuters) - The Canadian dollar strengthened
by nearly a cent against its U.S. counterpart on Friday
following a surprisingly robust jobs report for Canada last
month and solid U.S. employment figures.
    Canada added 43,100 new jobs in October, and the
unemployment rate dropped to a nearly six-year low of 6.5
percent, according to  Statistics Canada. Analysts were
expecting a loss of 5,000 jobs on the heels of September's
massive 74,100 gain. 
    The U.S. labor market also grew at a brisk pace in October,
adding 214,000 new jobs, and the unemployment rate fell to a
six-year low of 5.8 percent, underscoring the world's largest
economy's resilience in the face of slowing global demand.
    "Overall, welcome good news for the Canadian dollar, because
you're seeing good strength in Canadian jobs following a soft
patch earlier this year, and continued strength in the U.S.
labor market that bodes well for spending on Canadian products,"
said Sal Guatieri, senior economist at BMO Capital Markets.
    The Canadian dollar was at C$1.1364 to the
greenback, or 88.00 U.S. cents, stronger than Thursday's close
of C$1.1426, or 87.52 U.S. cents.
    At one point, it hit C$1.1330, but the broader theme of a
resurgent U.S. dollar encouraged traders to buy on the dips.
    "There's a lot of (U.S. dollar) buying interest at
mid-C$1.1350 or so, with a couple of little bounces on the way
down here," said David Tulk, chief Canada macro strategist at TD
    Canadian government bond prices were mixed across the
maturity curve, with the two-year down 2.5 Canadian
cents to yield 1.041 percent and the benchmark 10-year
 was up 9 Canadian cents to yield 2.075 percent.

 (Reporting by Solarina Ho and Alastair Sharp; Editing by Lisa
Von Ahn)