CANADA FX DEBT-C$ edges higher against firmer greenback as oil stabilizes
* Canadian dollar at C$1.3495, or 74.10 U.S. cents * Bond prices lower across a steeper yield curve TORONTO, June 1 (Reuters) - The Canadian dollar edged higher against its broadly firmer U.S. counterpart on Thursday as the price of oil, one of Canada's major exports, stabilized after a sharp loss the day before. U.S. crude prices were up 0.02 percent to $48.33 a barrel after having hit a nearly three-week low on Wednesday. U.S. industry data showed a big drop in crude stocks last week. But the market remains suspicious whether Organization of the Petroleum Exporting Countries cuts will be enough to rebalance an oversupplied market. The U.S. dollar rose against a basket of major currencies, helped by a report that showed U.S. private employers added 253,000 jobs in May. At 10:09 a.m. ET (1409 GMT), the Canadian dollar was trading at C$1.3495 to the greenback, or 74.10 U.S. cents, up 0.1 percent. The currency traded in a narrow range of C$1.3478 to C$1.3516. The slight gains for the Canadian dollar comes after data on Wednesday showed that Canada's economy accelerated in the first quarter on the back of strong consumer spending and a business investment rebound. The currency is expected to dip in the short term but stabilize in 12 months, a Reuters poll showed, as a strengthening domestic economy encourages the Bank of Canada to prepare the market for interest rate hikes. Canadian government bond prices were lower across a steeper yield curve in sympathy with U.S. Treasuries after the U.S. private payroll report. The two-year fell 4 Canadian cents to yield 0.716 percent and the 10-year declined 29 Canadian cents to yield 1.448 percent. Canada's trade data for April is due on Friday. (Reporting by Fergal Smith; Editing by Nick Zieminski)
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