February 6, 2017 / 10:20 PM / 3 years ago

CANADA FX DEBT-C$ weaker as oil slips; trade, jobs data eyed

(Adds broker comment, updates prices to close)
    * Canadian dollar settles at C$1.3087, or 76.41 U.S. cents
    * Bond prices higher across the maturity curve

    By Alastair Sharp
    TORONTO, Feb 6 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Monday as oil prices fell and
bond yields settled at a two-week low, with investors awaiting
December trade data due on Tuesday and jobs numbers later in the
week for signs of economic growth.
    The loonie, as Canada's currency is popularly known, had
gained for two straight weeks on a combination of favorable
economic data and greenback weakness. Last week, it touched its
strongest level since September.
    The Canadian dollar settled at C$1.3087 to the
greenback, or 76.41 U.S. cents, weaker than the Bank of Canada's
official close on Friday of C$1.3028, or 76.76 U.S. cents.
    The loonie traded in a range of C$1.3008 to C$1.3135.
    "We spent two or three days trying to push through C$1.30
without any real success," said Darcy Browne, managing director
for foreign exchange sales at CIBC Capital Markets.
    "It rallied up to C$1.3135, which is the 200-day moving
average, and got rejected pretty hard from there as well," he
    Economists polled by Reuters have a wide range of
expectations for Tuesday's data after Canada achieved its first
trade surplus in more than two years in November. 
    The most optimistic see a C$1.5 billion surplus, while the
most pessimistic expect a C$1.5 billion deficit. The median view
is for a surplus of C$350 million after the surprise C$526
million surplus in the prior month.
    Jobs data is due on Friday, with the market expecting no
growth after a bumper 53,700 job gains in December.
    U.S. crude oil prices settled down 1.5 percent at
$53.01 a barrel, while Brent lost 1.9 percent to
    Canadian government bond prices were higher across the
maturity curve, with the two-year price up 7.5
Canadian cents to yield 0.737 percent and the benchmark 10-year
 rising 52 Canadian cents to yield 1.701 percent, its
lowest settlement since Jan. 23.
    The Canada-U.S. two-year bond spread narrowed to -41.6 basis
points, while the 10-year spread came in at -70.9 basis points.

 (Reporting by Alastair Sharp; Editing by Lisa Von Ahn and Peter
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