10.07.201423:33:45UTC+00Canadian dollar firms as investors focus on jobs data

The Canadian dollar recovers from its earlier weakness as risk aversion widely affected markets. Investors turned their attention to the key domestic jobs data due at the end of the week.

Woes over financial troubles at the family-owned firms behind Portugal’s biggest listed bank shook traders overnight as it revitalized the scepter of the eurozone crisis.

These concerns moved markets worldwide and pushed the loonie lower in early trading. But the currency wiped out its losses by the afternoon.

"Those types of headlines are typically really loonie negative. It's surprising to see the amount of resistance the loonie has had to those negative catalysts, which historically would have been just another reason to sell off the loonie and move toward the U.S dollar," said Rahim Madhavji, President at Knightsbridge Foreign Exchange.

The loonie closed the North American session at C$1.0647 to the greenback or 93.92 US cents, sturdier than Wednesday's C$1.0660 or 93.81 US cents.

Investors are also poised to the jobs report, a prelude to the policy statement from the Bank of Canada next week. BOC would also release its updated economic forecasts.

The central bank has reiterated its worries about low inflation but following some recent stronger than anticipated inflation readings, there was speculation the bank would be forced to change its stance.

After touching more than one-year low, the two-year bond went up half a Canadian cent, to 1.121%, while the 10-year bond rose 8 Canadian cents, to 2.239%