January 16, 2020 / 4:13 PM / a month ago

CANADA FX DEBT-Canadian dollar sticks to narrow range as domestic jobs climb

    * Canadian dollar trades near flat against the greenback
    * Canada adds 46,200 jobs in December
    * Loonie trades in a range of 1.3033 to 1.3056
    * Canadian bond prices fall across a steeper yield curve

    TORONTO, Jan 16 (Reuters) - The Canadian dollar was little
changed against the greenback on Thursday, extending this week's
sideways trading pattern as the U.S. dollar broadly rose and
data from a payroll services provider showed the sixth straight
month of domestic job gains.    
    Canada added 46,200 jobs in December, the sixth straight
month of gains, led by increased hiring in education and health
care, as well as construction, according to a report from ADP.
            
    It follows official data on Friday which also showed a solid
jobs gain for the final month of the year, tempering some
concerns about the strength of Canada's economy.             
    The U.S. dollar        rose against a basket of major
currencies, erasing earlier losses, after U.S. retail sales data
that painted a positive economic picture.
    At 10:34 a.m. (1534 GMT), the Canadian dollar          was
trading nearly unchanged at 1.3048 to the greenback, or 76.64
U.S. cents. The currency, which has been in a sideways pattern
since hitting last Thursday a near two-week low at 1.3104,
traded in a range of 1.3033 to 1.3056.
    On Wednesday, the loonie was boosted by improved investor
sentiment after the signing of a trade deal between the United
States and China. World stocks held near record highs on
Thursday, buoyed by the U.S. data and bank earnings.
            
    Canada runs a current account deficit and is a major
exporter of commodities, including oil, so its economy could
benefit from a pick-up in the global flow of trade or capital.
    U.S. crude oil futures        were up nearly 1% at $58.38 a
barrel.    
    The potential lessening of trade tensions comes ahead of an
interest rate decision next week from the Bank of Canada. Money
markets expect the central bank to leave its benchmark interest
rate unchanged at 1.75%.           
    Canadian government bond prices were lower across a steeper
yield curve on Thursday in sympathy with U.S. Treasuries. The
two-year            fell 2 Canadian cents to yield 1.647% and
the 10-year             was down 14 Canadian cents to yield
1.551%.

 (Reporting by Fergal Smith; Editing by David Gregorio)
  
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