October 4, 2017 / 9:08 PM / 3 years ago

CANADA FX DEBT-C$ makes gains ahead of jobs, trade data as U.S. dollar eases

 (Updates figures throughout, adds analyst comment)
    * Canadian dollar at C$1.2477, or 80.15 U.S. cents
    * Bond prices mixed across the yield curve
    * Employment data in focus this week

    TORONTO, Oct 4 (Reuters) - The Canadian dollar strengthened
against the greenback on Wednesday ahead of top tier domestic
data this week, and as the U.S. dollar softened against a basket
of major currencies.     
    Canada's trade data for August is due on Thursday and the
September employment report is scheduled for release on Friday,
which could help guide market expectations on prospects of
another interest rate hike by the Bank of Canada this month.
    The central bank has raised rates twice since July. But the
chances of another hike as soon as this month have dwindled to
less than 20 percent from nearly 40 percent before Governor
Stephen Poloz signaled last week that a third hike was not
imminent, the overnight index swaps market indicated.           
    At 4:00 p.m. the Canadian dollar          was trading at
C$1.2477 to the greenback, or 80.15 U.S. cents, up 0.1 percent.
    The currency traded in a range of C$1.2449 to C$1.25. On
Tuesday, it touched a one-month low at C$1.2539.
    Economic data will be the main currency driver in the coming
weeks, said Rahim Madhavji, President at KnightsbridgeFX.com,
adding that a dearth of economic news meant Wednesday's moves
were largely ebbs and flows in the market. "The devils are going
to be in the details with GDP and jobs."
    Madhavji expected the currency to hold near current levels
until the Federal Reserve or the Bank of Canada offers better
clarity on their next move.
    Speculation that U.S. President Donald Trump's choice for
the next head of the Federal Reserve could be a less hawkish
candidate than had previously been expected also weighed on the
U.S. dollar       .             
    Toronto home sales plunged in September from a year earlier
and prices were down 15.5 percent from their April peak, but
sales and prices inched up from August, suggesting housing in
Canada's largest city may be stabilizing, data showed.
    The currency gained even as the price of oil, one of
Canada's major exports, dipped following an unexpected jump in
U.S. crude exports and fanned worries about a global oversupply.
    U.S. crude        prices settled at $49.98 a barrel, down
0.87 percent.
    Canadian government bond prices were mixed across the yield
curve. The two-year            price inched down 1.5 Canadian
cent to yield 1.532 percent and the 10-year             gained
lost 7 Canadian cents to yield 2.122 percent.

 (Reporting by Solarina Ho and Fergal Smith; Editing by Susan
Thomas and Grant McCool)
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