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Canadian dollar sticks to narrow range as domestic jobs climb

Published 2020-01-16, 11:08 a/m
© Reuters.  Canadian dollar sticks to narrow range as domestic jobs climb
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* 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 (NASDAQ:ADP). 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. U.S. dollar .DXY 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 CAD=D4 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. 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 CLc1 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%. BOCWATCH

Canadian government bond prices were lower across a steeper yield curve on Thursday in sympathy with U.S. Treasuries. The two-year CA2YT=RR fell 2 Canadian cents to yield 1.647% and the 10-year CA10YT=RR was down 14 Canadian cents to yield 1.551%.

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