CANADA FX DEBT-Canadian dollar snaps daily losing streak after surprise jobs gain
By Fergal Smith
TORONTO, Nov 7 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Friday, clawing back some of this week's decline, as stronger-than-expected domestic jobs data offered a sign the economy is adjusting to trade uncertainty.
The loonie CAD= was trading 0.3% higher at 1.4075 per U.S. dollar, or 71.05 U.S. cents, after six straight days of declines.
Canada's economy added 66,600 jobs in October, which followed a 60,400 increase in September, and the unemployment rate fell to 6.9% from 7.1%. Analysts had forecast a jobs decline of 2,500.
"The Canadian economy again generated more jobs than anticipated last month, suggesting that the economy is beginning to shrug off the tariff shock," Karl Schamotta, chief market strategist at Corpay, said in a note.
"The Canadian dollar is driving higher and yields are climbing, suggesting that traders see the Bank of Canada waiting for longer before delivering a last cut in its easing cycle - if it delivers one at all."
Data on Wednesday showed that Canada's services economy expanded in October for the first time in 11 months.
Investors see a roughly 90% chance the BoC leaves interest rates unchanged in December, up from 80% before the jobs data. Last week, the BoC signaled a possible end to its easing campaign after it lowered its benchmark rate to a three-year low of 2.25%.
The currency moved on Friday in a range of 1.4056 to 1.4126. For the week, it was down 0.5%, as investors weighed a recent hawkish tilt by the Federal Reserve.
On Tuesday, Prime Minister Mark Carney committed to invest about C$280 billion over five years in infrastructure as well as on measures to raise productivity and competitiveness in a budget that more than doubled this year's fiscal shortfall.
Canadian bond yields moved higher across the curve. The 10-year CA10YT=RR was up 4.9 basis points at 3.155%, while the gap between it and the equivalent U.S. rate narrowed by 6.8 basis points to about 92 basis points in favor of the U.S. note.
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