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CANADA FX DEBT-C$ firms ahead of Fed chair pick, domestic jobs data
November 2, 2017 / 1:45 PM / a month ago

CANADA FX DEBT-C$ firms ahead of Fed chair pick, domestic jobs data

    * Canadian dollar at C$1.2844, or 77.86 U.S. cents
    * Bond prices higher across the yield curve

    TORONTO, Nov 2 (Reuters) - The Canadian dollar edged higher
against its U.S. counterpart on Thursday, adding to its more
stable profile this week as investors awaited President Donald
Trump's decision on the next Federal Reserve chair and top-tier
domestic data.
    The loonie has fallen 6 percent since posting a more than
two-year high in September at C$1.2063. But analysts say it has
found support around C$1.2900, which is near the 50 percent
retracement of the currency's rapid appreciation from May to
September.
    The loonie hit its weakest in over three months on Friday at
C$1.2916, pressured by data which pointed to slower growth in
Canada's economy in the third quarter after a rapid expansion in
the first half of the year.
    Domestic jobs data for October and September trade data are
due on Friday.
    Trump is expected to nominate Jerome Powell to head the U.S.
central bank. Powell is seen as more dovish than some other
leading candidates.             
    At 9:27 a.m. ET (1327 GMT), the Canadian dollar          was
trading at C$1.2844 to the greenback, or 77.86 U.S. cents, up
0.2 percent.
    The currency traded in a range of C$1.2824 to C$1.2876.
    Prices of oil, one of Canada's major exports, slipped from
two-year highs but sentiment remained strong as supply cuts by
the Organization of the Petroleum Exporting Countries and other
major exporters tightened the market and drained inventories.
            
    Bank of Canada Governor Stephen Poloz said on Wednesday that
while monetary policy decisions will have an effect on the
Canadian dollar, oil prices will have the biggest long-term
impact on the currency.             
    Canadian government bond prices were higher across the yield
curve in sympathy with U.S. Treasuries. The two-year           
firmed 0.5 of a Canadian cent to yield 1.414 percent and the
10-year             gained 11 Canadian cents to yield 1.961
percent.

 (Reporting by Fergal Smith; Editing by Phil Berlowitz)
  
 

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