CANADA FX DEBT-C$ at 13-week high against greenback
* C$ rises to 98.80 U.S. cents
* Bonds nearly flat
By John McCrank
TORONTO, Aug 5 (Reuters) - Canada's dollar hit a 13-week high against the U.S. dollar on Thursday, spurred by possible merger and acquisition-related flows and a more positive mood in the markets ahead of key North American jobs reports on Friday.
The Canadian dollar CAD=D4 had been rangebound between C$1.02 and C$1.07 since last October, except for a brief foray to parity in April and a few slides into C$1.08 territory.
Overnight, the currency pushed through a key barrier, hitting its strongest point against the greenback since mid-May.
"We're seeing a combination of generally positive risk back ground , which is supportive of CAD, and speculation on potential M&A inflow into Canada," Adam Cole, head currency strategist at RBC Capital Markets in London, said of the move.
An ADP report on Wednesday showed that the U.S. companies added 42,000 jobs in July. That was coupled with some positive U.S. service sector data, helping ease some fears about the health of the world's biggest economy, which absorbs around three-quarters of all Canadian exports.
At 8:05 a.m. (1205 GMT), the Canadian dollar was at C$1.0121 to the U.S. dollar, or 98.80 U.S. cents. That compared with C$1.0176 to the U.S. dollar, or 98.27 U.S. cents, at Wednesday's close. Continued...