CANADA FX DEBT-C$ weaker after U.S. jobs report keeps Fed on course
* C$1.3173 buys one U.S. dollar * Bond prices lower across the maturity curve By Alastair Sharp TORONTO, Aug 7 (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Friday as employment reports from both countries kept their divergent monetary policy paths on track. The loonie, as Canada's currency is colloquially known, has lost almost 10 percent of its value since May. The central bank has cut rates twice this year as a plunge in the price of oil batters the country's energy industry. The Canadian economy added 6,600 jobs in July, above the average forecast of economists, but the number of full-time jobs declined. U.S. employment rose at a solid clip in July and wages rebounded after unexpectedly stalling in the prior month, signs of an improving economy that could open the door to a Federal Reserve interest rate increase in September. "Going into the report it (the Canadian dollar) was quite a bit stronger, and it's since lost all that ground that it had," said Doug Porter, chief economist at BMO Capital Markets. "I think some of that is just more reflective of a solid U.S. report today that keeps the Fed on track." The Canadian dollar was trading at C$1.3173 to the greenback, or 75.91 U.S. cents, weaker than Thursday's close of C$1.3108, or 76.29 U.S. cents. U.S. crude prices were down 1 percent at $44.20 a barrel, while Brent crude was off 1.2 percent at $48.92. Canadian government bond prices were mostly lower across the maturity curve, with the two-year down 2 Canadian cents to yield 0.445 percent and the benchmark 10-year up 8.5 Canadian cents to yield 1.442 percent. (Additional reporting by Allison Martell)
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