(Fixes first paragraph to show C$ weaker, not firmer)
* C$ at C$0.9980 to US$, or $1.0020
* U.S. and Canadian jobs data eyed
By Alastair Sharp
TORONTO, Nov 2 (Reuters) - The Canadian dollar was slightly
weaker against its U.S. counterpart on Friday ahead of key
employment reports from both countries.
At 7:49 a.m. (1149 GMT) the Canadian dollar was
trading at C$0.9980 to the greenback, or $1.0020, compared with
C$0.9968, or $1.0032, at Thursday's North American close.
U.S. job growth likely picked up in October, but not enough
to prevent the unemployment rate from rising off a near
four-year low. Canada likely added very few jobs
in the month after two bumper gains.
"Given the semblance of a soft patch that we've seen in
Canada, for the Canadian dollar it's mainly about the Canadian
number," said Shaun Osborne, chief currency strategist at TD
Securities.
The Canadian economy shrank in August for the first time in
six months, an unexpected contraction that pointed to a sharp
slowdown in third-quarter growth.
"If we do see somewhat softer numbers from Canada - we're
expecting a pullback from that gangbuster number last month -
and relatively decent numbers from the U.S. would underpin a
further narrowing of short-term spreads we've seen recently,"
Osborne said.
Canadian government bonds were outperforming U.S. Treasuries
across most of the curve, with the two-year bond up 2
Canadian cents to yield 1.069 percent, and the benchmark 10-year
bond rising 5 Canadian cents to yield 1.781 percent.
(Editing by James Dalgleish)