CANADA FX DEBT-C$ weaker as global fears outweigh job gains
* Canadian dollar at C$1.1217 or 89.15 U.S. cents * Strong jobs data overshadowed by global concerns * Bond prices mostly higher (Updates to close) By Andrea Hopkins TORONTO, Oct 10 (Reuters) - The Canadian dollar weakened against the greenback on Friday as concerns about global growth drove investors to the safety of the U.S. dollar and outweighed a stronger-than-expected Canadian employment report. The U.S. currency firmed against the loonie for a second straight session after three consecutive days of losses, bolstered by safe-haven bids spurred by worries about the health of the global economy with slowdowns evident in Europe, Japan, and China. Those safe-haven bids overrode a buoyant employment report on Friday that showed Canada's economy added 74,100 jobs in September, well above forecasts for a 20,000 gain, with the unemployment rate falling to a near six-year low of 6.8 percent. Beyond the headlines, the data was strong, with full-time work rising 69,300 and private-sector employment up 123,600. "The job numbers were a great chance to assess the strength of the Canadian dollar," said Adam Button, currency analyst at ForexLive in Montreal. "The Canadian dollar's inability to gain ground on an excellent job report is overwhelming evidence that the direction for the Canadian dollar is down." Button said the Canadian dollar has been caught up in concern about the global economy, specifically about Europe. "It's clear the crisis in Europe isn't over and it's increasingly clear it is getting worse." Worries about the euro zone were echoed by European Central Bank President Mario Draghi, who said on Friday that a slowdown in the region's economic momentum could make companies and households more reluctant to invest. The Canadian dollar rose as high as C$1.1160 to the U.S. dollar, or 89.61 U.S. cents, immediately after the employment report was released, but gave up those gains quickly and ended the North American session at C$1.1217 to the U.S. dollar, or 89.15 U.S. cents. That was weaker than Thursday's North American session close of C$1.1173 to the greenback, or 89.50 U.S. cents. Trading was quiet late in the day as Canada headed into a long weekend. Monday is Thanksgiving Day in Canada, a public and market holiday. Analysts said the volatility of the employment data in recent months means the Bank of Canada won't put enough stock in a single month of numbers to change its policy outlook. "Inevitably, there will be a slew of renewed questions about the quality of the jobs data, especially the wild swings in private sector payrolls," Doug Porter, chief economist at BMO Capital Markets, said in a research note. "As well, the good domestic news could quickly disappear under the waves of bad news washing ashore from overseas economies." Canadian government bond prices were mostly higher across the yield curve, with the two-year up 2 Canadian cents to yield 1.050 percent and the benchmark 10-year up 14 Canadian cents to yield 2.010 percent. (Editing by Jeffrey Hodgson; and Peter Galloway)
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