February 3, 2017 / 3:02 PM / 7 months ago

CANADA FX DEBT-C$ claws back some losses on U.S. jobs data

* Canadian dollar at C$1.3030, or 76.75 U.S. cents
    * Loonie is on track to rise 0.8 percent for the week
    * Bond prices higher across the yield curve

    TORONTO, Feb 3 (Reuters) - The Canadian dollar weakened
slightly against its U.S. counterpart on Friday but clawed back
some losses after U.S. jobs data showed tepid wage growth, while
the loonie remained on track to rise for the week.
    U.S. job growth surged more than expected in January but a
smaller-than-expected increase in wages may reduce pressure on
the Federal Reserve to raise rates in the near term.
 
    U.S. crude prices were up 0.02 percent at $53.55 a
barrel as investors weighed the possibility of new sanctions on
Iran. U.S. President Donald Trump said "nothing is off the
table" in response to Iran's test launch of a missile. 
    Oil is one of Canada's major exports.
    At 9:40 a.m. ET (1440 GMT), the Canadian dollar was
trading at C$1.3030 to the greenback, or 76.75 U.S. cents,
slightly weaker than Thursday's close of C$1.3020, or 76.80 U.S.
cents.
    The currency traded in a range of C$1.3011 to C$1.3083.
    For the week, the loonie has gained 0.8 percent, helped by
domestic data that showed the economy expanded faster than
expected in November and the manufacturing sector grew at its
fastest pace in over two years in January.
    On Tuesday, the Canadian dollar touched its strongest in
more than four months at C$1.2969, while it has been absent from
a list of currencies attracting the ire of U.S. President Donald
Trump.
    Trump and his top trade adviser this week criticized
Germany, Japan and China, saying the three key U.S. trading
partners were engaged in devaluing their currencies to the
detriment of U.S. companies and consumers.
    Canadian Prime Minister Justin Trudeau is taking a low key
approach to dealing with Trump, seeking to avoid clashes while
indirectly signaling the two leaders' differences to a domestic
audience. 
    Canadian government bond prices were higher across the yield
curve in sympathy with U.S. Treasuries on the disappointing U.S.
wage growth. The two-year rose 2.5 Canadian cents to
yield 0.762 percent and the 10-year climbed 28
Canadian cents to yield 1.731 percent.

 (Reporting by Fergal Smith; Editing by Bernadette Baum)

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