CANADA FX DEBT-C$ weakens as trade picture darkens; euro jumps

* Canadian dollar at C$1.2453, or 80.30 U.S. cents
    * Bond prices lower across the maturity curve

 (Adds details, quote, updates to close)
    TORONTO/OTTAWA, June 3 (Reuters) - The Canadian dollar
weakened against the greenback on Wednesday, weighed by more
disappointing economic data, this time a larger-than-expected
Canadian trade deficit in April.
    Currency markets were dominated by euro-centric trading,
however, as the common currency rose anew after the European
Central Bank kept monetary policy steady. The Canadian dollar
fell to a three-month low against the euro.
    On the economic front, Canada reported a near-record trade
deficit in April, with imports and exports falling alike. In
contrast, the U.S. trade gap shrank by the largest amount since
early 2009.  
    Data last week showed the Canadian economy contracted in the
first quarter. Although Bank of Canada Governor Stephen Poloz
said he expects a pick up in non-energy exports to help the
economy regain momentum, Wednesday's data showed that segment
disappointed in April.
    "We haven't seen that recovery in non-energy exports like
Poloz and the Bank of Canada would like," said Scott Smith,
senior market analyst at Cambridge Global Payments in Calgary.
    The Canadian dollar ended the North American
session at C$1.2453 to the greenback, or 80.30 U.S. cents,
weaker than the Bank of Canada's official close of C$1.2408, or
80.59 U.S. cents, on Tuesday.
    The next catalyst may come on Friday, when both Canada and
the United States report employment data for May. The U.S.
figures could garner more attention as markets try to gauge when
the Federal Reserve will begin raising interest rates.
    "Many in the market think we're just one really strong
non-farm job print away from certainty around July or at the
latest September for a (U.S.) rate hike," said Brad Schruder,
director of foreign exchange sales at BMO Capital Markets.
    Higher interest rates in the United States are expected to
lift the U.S. dollar to the detriment of the loonie.
    The Canadian dollar should trade between C$1.2450 and
C$1.2550 going into Friday's job numbers, Schruder said. 
    Canadian government bond prices were lower across the
maturity curve, with the two-year down 3-1/2 Canadian
cents to yield 0.612 percent and the benchmark 10-year
 falling 68 Canadian cents to yield 1.783 percent.
    The Canada-U.S. two-year bond spread was -6.50 basis points,
while the 10-year spread was -58.5 basis points.

 (Reporting by Alastair Sharp and Leah Schnurr; Editing by Steve