CANADA FX DEBT-C$ pares this week's losses as oil prices climb
* Canadian dollar at C$1.3389, or 74.69 U.S. cents * Bond prices slightly lower across the yield curve TORONTO, April 5 (Reuters) - The Canadian dollar strengthened on Wednesday against its U.S. counterpart, paring some of this week's losses as oil prices rose. U.S. crude prices were up 1.25 percent at $51.67 a barrel, helped by a fall in U.S. crude inventories and an outage at Britain's largest North Sea oilfield. Oil is one of Canada's major exports. Still, gains for the loonie were restrained as caution prevailed in global markets before a potentially tense meeting between U.S. President Donald Trump and his Chinese counterpart Xi Jinping this week. At 9:06 a.m. ET (1306 GMT), the Canadian dollar was trading at C$1.3389 to the greenback, or 74.69 U.S. cents, stronger than Tuesday's close of C$1.3406, or 74.59 U.S. cents. The currency traded in a range of C$1.3379 to C$1.3409. On Tuesday, the Canadian dollar hit a nearly three-week low against its U.S. counterpart at C$1.3455, pressured by a loss of risk appetite and domestic data showing an unexpected trade deficit. It has retreated 0.7 percent this week after finishing the first quarter with a 1 percent gain. The U.S. dollar was little changed on Wednesday ahead of the release of minutes from the last U.S. Federal Reserve meeting even as U.S. private employers added 263,000 jobs in March, well above economists' expectations. Canadian government bond prices were slightly lower across the yield curve, with the two-year down 2 Canadian cents to yield 0.749 percent and the 10-year falling 5 Canadian cents to yield 1.588 percent. On Tuesday, the 10-year yield touched its lowest in four months at 1.545 percent as U.S. Treasury yields declined on doubts about the ability of U.S. President Donald Trump to enact fiscal stimulus. Canada's employment report for March is due on Friday. Economists forecast that Canada added just 5,000 jobs after a strong run of employment gains. (Reporting by Fergal Smith Editing by W Simon)
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