CANADA FX DEBT-C$ slips as U.S. jobs figures robust, Canada's weak
* Canadian dollar at C$1.1412 or 87.63 U.S. cents * Bond prices mixed across the maturity curve By Solarina Ho TORONTO, Dec 5 (Reuters) - The Canadian dollar dropped further against the greenback on Friday after U.S. employment data for November came in stronger than expected and Canadian job figures were weaker than foreseen. The U.S. wage growth and labor market strength offered more signals that the U.S. Federal Reserve might be getting closer to raising interest rates. In Canada, however, the jobs data affirmed expectations that the Bank of Canada will stay on hold on rates until sometime after the Fed announces its first hike. "The U.S. employment report will provide a lift to the U.S. dollar and I think the Canada could come under a little bit of downward pressure as a result as well," said Paul Ferley, assistant chief economist at Royal Bank of Canada. At 9:31 a.m. (1411 GMT), the Canadian dollar was at C$1.1412 to the greenback, or 87.63 U.S. cents, weaker than Thursday's close of C$1.1375, or 87.91 U.S. cents. It briefly dropped as low as C$1.1443, or 87.39 U.S. cents. Canada lost 10,700 jobs in November after two consecutive months of big gains. Analysts had expected an increase of 5,000 jobs following increases of 43,100 and 74,100 jobs in October and September respectively. The unemployment rate edged up to 6.6 percent from October's 6.5 percent as had been expected. Market focus, however, was on the U.S. data, which showed that wages increased and that employers added 321,000 new jobs last month, the largest gain in nearly three years and the 10th straight month that growth has exceeded 200,000. Economists had forecast an increase of 230,000. "The two-year yields (in Canada) spiked higher on the U.S. data, despite the weaker Canadian data, so I think this is all a U.S. story," said Derek Holt, vice president of economics at Scotiabank. Canadian government bond prices were mixed across the maturity curve, with the two-year off 5 Canadian cents to yield 1.039 percent, and the benchmark 10-year sliding 34 Canadian cents to yield 1.947 percent. (Additional reporting by Allison Martell; Editing by Peter Galloway)
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