CANADA FX DEBT-C$ pares losses as Scaramucci out of White House, oil rallies

 (Adds market comment, updates prices)
    * Canadian dollar at C$1.2468, or 80.21 U.S. cents
    * Bond prices mixed across a steeper yield curve
    * 10-year yield touches its highest since November 2014

    By Alastair Sharp
    TORONTO, July 31 (Reuters) - The Canadian dollar recovered
somewhat against the U.S. dollar on Monday after the White House
said the president's recently named communications director was
out of a job and U.S. crude oil prices pushed above $50 a
    The loonie, as Canada's currency is colloquially known, has
jumped more than 10 percent since early May, including a 4
percent gain this month as the Bank of Canada raised interest
rates for the first time in nearly seven years and investors shy
away from rising U.S. political uncertainty.
    At 4 p.m. (2000 GMT), the Canadian dollar          was
trading at C$1.2468 to the greenback, or 80.21 U.S. cents, down
0.3 percent on the day but just off its strongest level in more
than two years, hit late last week.
    "Gains are definitely harder to come by here," said Blake
Jespersen, managing director of foreign exchange sales at BMO
Capital Markets, citing resistance in the low C$1.24s.
    "But if we continue to see more headlines out of Washington
and if crude continues to tick higher I absolutely think we'll
make fresh lows" in dollar/Canada, he said.
    The currency traded in a range of C$1.2433 to C$1.2530,
after hitting C$1.2414 on Thursday.
    The U.S. dollar fell 0.5 percent against a basket of
currencies        following news that Anthony Scaramucci, named
by President Donald Trump as communications director only 10
days ago, was leaving the post.             
    Scaramucci's departure follows the failure of a major
legislative effort - a healthcare overhaul - in Congress and
both his spokesman and previous chief of staff leaving their
    "There is just no faith in the Trump White House and any of
the policies he promised back on election day, and so there is
just no faith in the (U.S.) dollar as well as a result," BMO's
Jespersen said.
    Higher prices for oil, a major Canadian export, also
supported the Canadian dollar, with U.S. crude        settling
up nearly 1 percent at $50.17 a barrel.      
    Canadian government bond prices were mixed across a steeper
yield curve, with the two-year            price up 2.5 Canadian
cent to yield 1.315 percent and the 10-year             falling
23 Canadian cents to yield 2.056 percent.
    The 10-year yield touched its highest since November 2014 at
2.065 percent.
    Canadian producer prices fell more than expected in June,
data from Statistics Canada showed.             
    Both Canadian and U.S. jobs data for July and domestic trade
data for June are due on Friday.         

 (Additional reporting by Fergal Smith; Editing by Nick
Zieminski and James Dalgleish)