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* C$ at C$1.0486 vs US$, or 95.37 U.S. cents * Prospect of less U.S. stimulus weakens loonie TORONTO, Nov 13 (Reuters) - The Canadian dollar firmed marginally versus the U.S. currency in early trade on Wednesday, but the effect of domestic catalysts was muted amid heightened anticipation that the U.S. Federal Reserve may soon trim its monetary stimulus. The loonie has weakened by two cents in recent weeks after the Bank of Canada dropped its mild rate-hiking bias and decent economic data out of the United States raised expectations the Fed will move to tighten its monetary policy. A top U.S. central banker on Tuesday said the Fed could reduce the pace of its monthly asset purchases at a Dec. 17-18 policy meeting. Canada meanwhile is in better fiscal health than previously thought, the Conservative government said on Tuesday, predicting it would run a sizeable budget surplus in time for the 2015 federal election. "What's most interesting is we have one of the first governments among the Western economies announcing a surplus in a couple of years and it doesn't really seem to do anything positive for the currency," said Don Mikolich, executive director for foreign exchange sales at CIBC World Markets. At 9:08 a.m. (1408 GMT) the Canadian dollar was trading at C$1.0486 to the greenback, or 95.37 U.S. cents, compared with C$1.0493, or 95.30 U.S. cents, at Tuesday's North American close. "It goes to show how transfixed the market is on the potential of Fed tapering as early as December," Mikolich said. The two-year bond was up one and a half Canadian cents to yield 1.132 percent, while the benchmark 10-year bond rose 9 Canadian cents to yield 2.636 percent. Mikolich said he expected the currency to trade between C$1.0420 and C$1.0535 during the session, and for a similar range to be maintained through the end of the week.