CANADA FX DEBT-C$ slips after Fed minutes, jobs data in view
* Canadian dollar at C$1.1115 or 89.97 U.S. cents * Bond prices mixed across the maturity curve By Leah Schnurr TORONTO, Oct 9 (Reuters) - The Canadian dollar dipped against the greenback Thursday as investors digested minutes from the Federal Reserve's most recent meeting that indicated there was concern a rising U.S. dollar could hold back inflation from the Fed's target. The loonie was also pressured by weaker oil prices and the market was cautious ahead of the Canadian unemployment report for September, the main economic event of the week. Wednesday's Fed minutes roiled currency markets as they showed concern from a "couple" of policymakers that the recent rally in the U.S. dollar might slow a gradual increase in inflation toward the Fed's 2 percent goal. The U.S. dollar has been on a tear since July and is one of the major reasons behind the Canadian dollar's weakness in recent months. The minutes prompted some investors to push their expectation for when the Fed will raise rates further out into next year. While it was somewhat surprising that the foreign exchange rate was talked about as much as it was, the market's reaction may be a little overdone, said Greg Moore, senior currency strategist at Royal Bank of Canada in Toronto. "It seemed to be the two dissenting Fed members that were focused on the potential negative impacts on inflation, (which) suggests it's not a strong and broad view among the Fed as a whole," Moore said. "While they may be talking about it for the first time in quiet a while, it doesn't really change the overall picture." The Canadian dollar was at C$1.1115 to the greenback, or 89.97 U.S. cents, weaker than Wednesday's close of C$1.1104, or 90.06 U.S. cents. The loonie had touched a one-week high in overnight trading. Fed policy will likely remain at the forefront with a number of central bank officials scheduled to give speeches over the next two days. At home, focus was turning to Friday's jobs report, which is forecast to show Canadian employers added 20,000 jobs last month, rebounding from a loss of 11,000 in August. But the volatile nature of the report, which has seen big swings both up and down, could keep investors wary of taking aggressive bets. Canadian government bond prices were mixed across the maturity curve, with the two-year up 0.2 Canadian cents to yield 1.052 percent and the benchmark 10-year up 2 Canadian cents to yield 2.012 percent. (Editing by Bernadette Baum)
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