C$ little changed after hitting more than 3-1/2-year peak vs U.S. dollar - Reuters News

• Canadian dollar slightly higher against the greenback
• Copper prices hit all-time high
• Canadian 10-year yield down slightly

NEW YORK, May 10 (Reuters) - The Canadian dollar rose to its highest since mid-September 2017 on Monday, but was last little changed on the day, drawing some support overall from firmer commodity prices and generally higher yields compared with its U.S. counterpart.

Analysts said those two factors have helped shield the Canadian dollar from the negative impact of the economy's worse-than-expected jobs report last Friday.

Canada's economy lost 207,100 jobs in April, more than analysts' estimates of 175,000 job losses, with declines driven by coronavirus restrictions in populous Ontario, Quebec and British Columbia, data showed. (Full Story)

In morning trading, the loonie CAD=D3 was flat at 1.2119 per U.S. dollar, having earlier touched its strongest intraday level since September 2017 at 1.2090.

"Weak data in Canada was widely expected, given the April lockdowns, and we do not think the data will deflect the BoC (Bank of Canada) from its tapering trajectory," said Scotiabank in a research note.

The Canadian dollar has rallied against the greenback since the Bank of Canada last month flagged that it could begin hiking interest rates in late 2022 and cut the pace of its bond purchases.

Since roughly mid-April, the loonie has gained nearly 5%.

The Canadian currency also rose as copper raced to a record peak on Monday as investors worried about missing out on further gains.

Three-month copper on the London Metal Exchange CMCU3 climbed to an all-time high of $10,747.50 a ton after first breaking through a decade-old record on Friday. (Full Story)

Canadian government bond yields were little changed across the curve, with the 10-year CA10YT=RR slightly down at 1.494%, from 1.5% late on Friday.

Euro zone investor morale rises to highest level since March 2018 - Reuters News

BERLIN, May 10 (Reuters) - Investor morale in the euro zone rose in May to its highest level since March 2018 on all-time high expectations and an upbeat evaluation of the current situation, a survey showed on Monday, suggesting the bloc is overcoming the COVID-19 crisis.

Sentix's index for the euro zone climbed to 21.0 from 13.1 in April. A Reuters poll had pointed to a reading of 14.0. 

A current conditions index moved to positive territory, hitting its highest level since May 2019. An expectations index climbed to a record 36.8 from 34.8 a month earlier.

"The economic situation in the euro zone continues to improve," Sentix said, adding that "the recession caused by the corona(virus) crisis has been overcome."

Sentix surveyed 1,204 investors from May 6 to May 8.

UK house price growth hits five-year high in April: Halifax - Reuters

LONDON, May 10 (Reuters) - British house prices increased last month at the fastest annual rate for five years, helped by finance minister Rishi Sunak's extension of tax cut for buyers, mortgage lender Halifax said on Monday.

House prices rose by 8.2% in annual terms in April, Halifax said, the biggest gain since April 2016 and following a 6.5% increase in March. 

In April alone, house prices rose by 1.4% - the biggest monthly jump in seven months.

Britain's housing market has boomed since the lifting of a first coronavirus lockdown in the spring of 2020 and was given further impetus by Sunak's announcement on March 3 that he was extending the cut in stamp duty land tax for buyers.

The first 500,000 pounds ($703,200) of any property purchase in England or Northern Ireland will remain exempt from stamp duty until the end of June, and there will be a 250,000 pound tax-free allowance until the end of September.

Sunak also announced a new government mortgage guarantee scheme to ease deposit constraints for prospective home-buyers.

Last week the Bank of England reported a record increase in the value of mortgage lending during March, while mortgage lender Nationwide said house prices jumped by 2.1% in April, their biggest monthly rise in more than 17 years. (Full Story)

"We do expect recent levels of activity to be sustained over the short-term as buyers continue to search for homes with more space and potentially better suited for their new working patterns," Halifax managing director Russell Galley said.

However, he stuck to his view that house price growth was likely to fade later this year because of the potential for higher unemployment once Britain's job-protecting furlough programme ends.