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CANADA FX DEBT-C$ claws back some losses on U.S. jobs data

Published 2017-02-03, 10:02 a/m
© Reuters.  CANADA FX DEBT-C$ claws back some losses on U.S. jobs data
USD/CAD
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CL
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CA2YT=RR
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CA10YT=RR
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* Canadian dollar at C$1.3030, or 76.75 U.S. cents

* Loonie is on track to rise 0.8 percent for the week

* Bond prices higher across the yield curve

TORONTO, Feb 3 (Reuters) - The Canadian dollar weakened slightly against its U.S. counterpart on Friday but clawed back some losses after U.S. jobs data showed tepid wage growth, while the loonie remained on track to rise for the week.

U.S. job growth surged more than expected in January but a smaller-than-expected increase in wages may reduce pressure on the Federal Reserve to raise rates in the near term. crude CLc1 prices were up 0.02 percent at $53.55 a barrel as investors weighed the possibility of new sanctions on Iran. U.S. President Donald Trump said "nothing is off the table" in response to Iran's test launch of a missile. O/R

Oil is one of Canada's major exports.

At 9:40 a.m. ET (1440 GMT), the Canadian dollar CAD=D4 was trading at C$1.3030 to the greenback, or 76.75 U.S. cents, slightly weaker than Thursday's close of C$1.3020, or 76.80 U.S. cents.

The currency traded in a range of C$1.3011 to C$1.3083.

For the week, the loonie has gained 0.8 percent, helped by domestic data that showed the economy expanded faster than expected in November and the manufacturing sector grew at its fastest pace in over two years in January.

On Tuesday, the Canadian dollar touched its strongest in more than four months at C$1.2969, while it has been absent from a list of currencies attracting the ire of U.S. President Donald Trump.

Trump and his top trade adviser this week criticized Germany, Japan and China, saying the three key U.S. trading partners were engaged in devaluing their currencies to the detriment of U.S. companies and consumers.

Canadian Prime Minister Justin Trudeau is taking a low key approach to dealing with Trump, seeking to avoid clashes while indirectly signaling the two leaders' differences to a domestic audience. government bond prices were higher across the yield curve in sympathy with U.S. Treasuries on the disappointing U.S. wage growth. The two-year CA2YT=RR rose 2.5 Canadian cents to yield 0.762 percent and the 10-year CA10YT=RR climbed 28 Canadian cents to yield 1.731 percent.

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