CANADA FX DEBT-C$ softens as US$ gets boost from jobs, CPI
* C$ at C$1.0332 vs US$, or 96.80 cents * U.S. jobless claims falls to near six-year low * U.S. CPI rises in July * Bond prices fall across curve By Solarina Ho TORONTO, Aug 15 (Reuters) - The Canadian dollar weakened Thursday against a firmer U.S. dollar, which rose on upbeat U.S. economic data that showed fewer-than-expected Americans filed new claims for jobless benefits last week. The weakness in the commodities-linked Canadian dollar was tempered in part by higher resource prices, including oil, a key Canadian export. Initial U.S. jobless claims fell to a near six-year low last week and U.S. consumer prices rose in July. The upbeat data could push the Federal Reserve closer to scaling back its huge bond-buying program. "(The data) has been boosting the U.S. dollar," said Charles St-Arnaud, economist and currency strategist with Nomura Securities in New York. "We should start to see the Canadian dollar weaken slightly from here. One of the big reasons is that we believe the U.S. dollar will be stronger against everyone going into the end of the year." The Canadian dollar was trading at C$1.0332 versus the U.S. dollar, or 96.80 U.S. cents, at 9:36 a.m. (1336 GMT). This compares with its Wednesday close at C$1.0328, or 96.82 cents. The Canadian dollar, which was outperforming all major currencies except the British pound, was seen trading between C$1.0284 and C$1.0364 on Thursday, according to Scotiabank. Canadian manufacturing sales data, due out Friday, is not expected to be a huge market mover. "It's extremely quiet ... Until retail sales and CPI next week, I think the Canadian dollar will continue to mainly follow what's happening in the global economy," said St-Arnaud. Prices for Canadian government debt were lower across the maturity curve. The two-year bond slipped half a Canadian cent to yield 1.229 percent and the benchmark 10-year bond fell 50 Canadian cents to yield 2.690 percent.
© Thomson Reuters 2017 All rights reserved.