CANADA FX DEBT-C$ pares weekly gain as U.S. political uncertainty clips risk appetite

    * Canadian dollar falls 0.3% against the greenback
    * Price of U.S. oil slides 4.8%
    * The loonie is on track to gain 0.4% for the week
    * Canadian bond yields edge lower across the curve

    TORONTO, Oct 2 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Friday after news that U.S.
President Donald Trump tested positive for COVID-19 pressured
stocks and the price of oil, with the loonie giving up some of
this week's gains.
    U.S. stock index futures tumbled and U.S. crude       
prices were down 4.8% at $36.85 a barrel, with Washington's
failure to reach a new fiscal stimulus deal compounding the
impact of increased political uncertainty just four weeks before
U.S. elections.                          
    Investors also weighed data showing U.S. job growth slowed
more than expected in September. Canada sends about 75% of its
exports to the United States, including oil.
    The Canadian dollar        was trading 0.3% lower at 1.3325
to the greenback, or 75.05 U.S. cents, having traded in a range
of 1.3277 to 1.3329. For the week, the loonie was up 0.4%.
    It is set to gain further ground against its U.S.
counterpart in a year as an expected recovery in the global
economy from the coronavirus crisis improves the outlook for
commodity prices, a Reuters poll showed.             
    Canada on Thursday launched a C$10 billion, three-year
infrastructure plan it said would help the country create jobs
and recover from the economic slump caused by the pandemic.
    Canadian government bond yields edged lower across the curve
in sympathy with U.S. Treasuries on Friday. The 10-year
            was down 1 basis point at 0.542%.  

 (Reporting by Fergal Smith
Editing by Nick Zieminski)