* C$ up at C$0.9992 vs US$, or $1.0008
* Bond prices drift lower across curve
By Claire Sibonney
TORONTO, May 10 (Reuters) - The Canadian dollar firmed
slightly against the U.S. dollar on Thursday, pausing from a
sharp selloff in the previous session as investors awaited a
slew of North American economic data.
The Canadian currency did not take any major direction from
weak Chinese trade data that stoked fears of slower growth and
undermined global risk appetite as European leaders struggled to
contain a worsening debt crisis.
Market participants took some positive direction from rising
U.S. stock futures.
But many traders appeared to be on the sidelines ahead of
Canada's monthly employment report on Friday and other North
American economic data due at 8:30 a.m. (1230 GMT) on Thursday,
including U.S. jobless claims, trade data from both sides of
the border and Canadian housing prices.
"In the case of Canada, it's more tomorrow's employment data
that is critical rather than today's data to the extent that
that probably is ... one of the more important determinants of
the Bank of Canada executing the tightening bias that it now
carries," said Adam Cole, global head of FX strategy at RBC
Capital Markets in London.
"So the fact that the Bank of Canada put that tightening
bias in place at the last meeting does throw the spotlight a bit
more onto the domestic indicators than it has been in recent
months."
Canada will be fortunate if it registered much of an
employment increase in April after March's outsized gain of
82,300 jobs, according to a Reuters poll of analysts.
Data out on May 11 is forecast to show a much smaller 7,000
gain, and the unemployment rate edging back up a tick to 7.3
percent, after having fallen in March to 7.2 percent from 7.4
percent. (ID:nL1E8G4LBK)
At 7:57 a.m. (1157 GMT), the Canadian currency
stood at C$0.9992 versus the U.S. dollar, or $1.0008, slightly
stronger than Wednesday's finish at C$1.0009 against the U.S.
dollar, or 99.91 U.S. cents.
On Wednesday, Canada's dollar slid to its lowest in three
and half months, back below parity against the U.S. dollar over
fears about the health of Spanish banks and a political impasse
in Greece.
Cole said the parity level is providing some support for the
U.S. dollar against Canada's. "You would want to see a close
below that level to be convinced that it was sustainably
breaking below that level," he said.
"But otherwise I think quite narrow ranges ahead of the
(employment) numbers tomorrow unless you get a large move in
risk appetite one way or the other which is enough to carry
CAD."
Canadian bond prices drifted lower across the curve, with
Canada's 2-year bond down 4 Canadian cents to yield
1.243 percent, while the benchmark 10-year bond lost
17 Canadian cents to yield 2.003 percent.