CANADA FX DEBT-C$ ends flat in quiet trade, focus on Friday jobs data
* Canadian dollar unchanged at C$1.0677 or 93.66 U.S. cents * Investors await Canadian June jobs report on Friday * Bond prices higher across the maturity curve (Adds details of market action, closing figures) By Andrea Hopkins TORONTO, July 8 (Reuters) - The Canadian dollar was unchanged against the greenback on Tuesday, stabilizing after the previous session's sharp decline as a lack of domestic economic data left the currency drifting. The loonie lost 0.3 percent on Monday after a disappointingly weak report on purchasing activity in June, but it is expected to sit tight until Canadian unemployment data for June, due on Friday, provides some direction. Investors are also trying to gauge whether the Bank of Canada will stick to a neutral tone when it releases its monetary policy statement next week or whether a recent strong inflation report will force the central bank to alter its message. "For the balance of the week, with not much data-wise except for Canadian employment on Friday, nothing major in the States, we will probably remain fairly range-bound until Friday morning," said David Bradley, director of foreign exchange trading at Scotiabank. Mark Chandler, head of Canadian fixed income and currency strategy at Royal Bank of Canada in Toronto, said the loonie's recent gains could be erased by a weak jobs report. "If we have a swing and a miss on our employment report, you could have an accumulation of decent (economic) evidence in the U.S. and our bank likely to be cautious, so that wouldn't be a good prescription for the currency," Chandler said. The Canadian dollar ended the North American session at C$1.0677 to the greenback, or 93.66 U.S. cents, unchanged from Monday's close of C$1.0677, or 93.66 U.S. cents. Scotiabank's Bradley said he expects the currency to remain in a range between C$1.0630 and C$1.0720 until the jobs report. On average, analysts polled by Reuters expect Canadian employers to have added 20,000 jobs in June after the 25,800 gained in May. The unemployment rate is expected to be unchanged at 7.0 percent. Despite Monday's pullback, the loonie is still up about 2.5 percent since early June following a rally fueled by the firmer inflation data, higher oil prices and a stronger outlook for global economic growth. Canadian government bond prices were higher across the maturity curve, with the two-year up 3.5 Canadian cents to yield 1.116 percent and the benchmark 10-year up 47 Canadian cents to yield 2.249 percent. (Editing by Chizu Nomiyama; and Peter Galloway)
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