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* C$ rises to 99.29 U.S. cents
* Bond prices lower across curve
* Quiet conditions expected, markets to close early
TORONTO, Dec 24 (Reuters) - Canada's dollar headed higher for a third straight session on Friday, lifted by a rising European oil price, but limited movement was expected in thin trade ahead of the holidays.
At 8 a.m. (1 p.m. GMT), the Canadian currency CAD=D4 was at C$1.0072 to the U.S. dollar, or 99.29 U.S. cents, up from Thursday's North American session close at C$1.0089 to the U.S. dollar, or 99.12 U.S. cents.
Earlier, it touched as high as C$1.0053 to the greenback, or 99.47 U.S. cents, its strongest level in a week, as oil hovered around its highest levels in more than two years, supported by cold weather across the globe and appetite for risk assets. [O/R]
"Pre-holiday thin conditions combined with an early close suggest that it will all wrap up by midday today. The range on dollar/Canada should see it potentially trade down to C$1.0040, likely no higher than C$1.0090 in a relatively muted session," said Jack Spitz, managing director of foreign exchange at National Bank Financial.
"Markets will be thin until the middle part of next week. There should be some calendar year-end flow and repatriation-related activity. The market will pick up in a meaningful way after the new year," he added.
Traders noted that given little liquidity before Christmas and New Year holidays, the currency was being driven more by flows from orders going through. There was no data due on Friday.
Canadian bond prices were mildly lower as overseas stock markets were higher, and were weighed by the fairly positive economic data from the previous session.
Thursday's U.S. durable goods data and rising consumer spending reinforced expectations for strong economic growth in the fourth quarter.
The two-year bond CA2YT=RR was down 6 Canadian cents to yield 1.696 percent, while the 10-year bond CA10YT=RR slipped 8 Canadian cents to yield 3.178 percent.
Toronto's main equity index and the Canadian government bond market will shut early on Friday, while the Bank of Canada plans to publish its noon and closing rates concurrently, at about 12:15 p.m. Markets will reopen on Wednesday. (Reporting by Ka Yan Ng; Editing by Derek Caney)