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* Canadian dollar rises to 92.65 U.S. cents
* Bonds slip as stocks suggest higher open
* Employment data, Fed in focus this week
TORONTO, Nov 2 (Reuters) - The Canadian dollar was higher against the U.S. currency on Monday on firmer commodity prices in a quiet start, but volatility could return in a week that features employment data and central bank policy meetings.
Canadian bond prices were lower as U.S. stock index futures pointed to a rebound after last week's big drop.
Overnight, the Canadian currency weakened to C$1.0871 to the U.S. dollar, or 91.99 U.S. cents, but recovered as euro zone data confirmed an expansion in manufacturing activity and renewed risk appetite.
Oil, often a key driver of the Canadian dollar because the country is a net exporter of the resource, rose towards $78 a barrel, recovering from the previous session's steep drop. [O/R]
The Canadian data calendar is very light this week until Friday, leaving the currency to likely react to outside influences for much of the week.
"It could be quite a volatile week. We got a Fed decision, two employment reports and a few other interesting things on the agenda, and as a consequence, I think it will be a bit of a rollercoaster ride," said Eric Lascelles, chief rates and economics strategist at TD Securities.
October employment figures for Canada and the United States are due at the end of the week, and investors will be looking to see if the economic recovery has improved.
Last week, Canada's growth picture became troubling after data showing its gross domestic product shrank in August, putting in doubt the Bank of Canada's forecast for third-quarter growth.
Meanwhile, this week also features meetings at other major central banks, including the U.S. Federal Reserve and European Central Bank, and a G20 finance ministers' meeting. [M/DIARY] At issue in all cases is the future of the liquidity that has been behind much of this year's financial market recovery.
Some officials in Europe and countries such as Canada have voiced concerns over the strength of their currencies. But G20 sources said on Monday that foreign exchange rates were not expected to be a major topic. [ID:nL2324375]
At 8:20 a.m., the Canadian dollar was at C$1.0793 to the U.S. dollar, or 92.65 U.S. cents, up from C$1.0819 to the U.S. dollar, or 92.43 U.S. cents, at Friday's close.
The two-year bond CA2YT=RR fell 11 Canadian cents to C$99.73 to yield 1.385 percent, while the 10-year bond CA10YT=RR lost 7 Canadian cents to C$102.58 to yield 3.431 percent.
(Reporting by Ka Yan Ng, Editing by Chizu Nomiyama)