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(Reuters)
TORONTO (Reuters) - The Canadian dollar rose against the greenback on Friday morning in thin trading with the U.S. markets closed for a holiday, extending slim gains the previous session on weak U.S. jobs data.
The Canadian dollar finished slightly higher against the greenback on Thursday, but well off its session peaks, as a gloomy U.S. jobs report dimmed optimism about the pace of economic recovery and dulled risk appetite.
George Davis, chief technical strategist at RBC Capital Markets, said the Independence Day holiday in the United States on Friday meant little fresh direction for currency traders.
"I don't think it's linked to anything in particular in terms of equities and commodities," he said of the currency's move slightly higher. "I think it's more limited to the deal flow that we've seen in the overnight session and the general lack of liquidity."
At 7:34 a.m., the Canadian dollar was at C$1.1587 to the U.S. dollar, or 86.30 U.S. cents, up from Thursday's finish at C$1.1623 to the U.S. dollar, or 86.04 U.S. cents.
The currency rose even as oil prices stagnated and global equity markets sagged. Oil, a key Canadian export, was little changed after slipping earlier on lingering concerns about a grim U.S. jobs picture in the previous session, while global equity markets were also lower.
Weaker stocks usually signal risk aversion, which often hurts the Canadian dollar; softer oil prices usually hurts the currency as well.
Canadian bond prices were mostly higher across the curve on Friday, largely due to lingering effects of Thursday's move higher following the jobs reading south of the border.
(Reporting by Jennifer Kwan; Editing by Frank McGurty)
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