CANADA FX DEBT-C$ hovers near 1-month high after China data
* Canadian dollar at C$1.0872 or 91.98 U.S. cents * Bond prices mostly higher across the maturity curve By Leah Schnurr TORONTO, May 8 (Reuters) - The Canadian dollar firmed against the greenback on Thursday, hovering near a one-month high after data showed exports in China picked up, easing some concerns over the strength of the world's second-largest economy. The loonie also got some support from domestic data that showed housing starts rebounded in April. The currency rose to its highest level in almost a month in early morning trading as investors were cheered by data that showed China's exports and imports returned to growth in April. The Canadian dollar is often sensitive to economic news out of China, a major consumer of natural resources. China had seen a weaker-than-expected start to 2014, which prompted nervousness over the prospects for global growth. "Those better numbers helped put some optimism out there that there might be a floor under the weakness we saw in the growth numbers for the first quarter in the Chinese economy and we could see a rebound in the second quarter," said Scott Smith, senior market analyst at Cambridge Mercantile Group in Calgary. "That helped out commodity-correlated currencies overnight, so the Canadian dollar got a bit of a bid." The Canadian dollar was at C$1.0872 to the greenback, or 91.98 U.S. cents, stronger than Wednesday's close of C$1.0894, or 91.79 U.S. cents. The loonie touched a session high of C$1.0868. After earlier pushing higher, the euro fell against the Canadian dollar as investors were watching a press conference by European Central Bank President Mario Draghi. The euro was at C$1.5101 after Draghi said the central bank may consider fresh monetary policy measures at its June meeting after updated economic forecasts are published by the bank's staff. The euro had initially got a lift against the Canadian dollar after the ECB left interest rates unchanged. Canadian government bond prices were mostly higher across the maturity curve, though the two-year was unchanged to yield 1.075 percent, while the benchmark 10-year rose 18 Canadian cents to yield 2.360 percent. (Editing by Nick Zieminski)
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