CANADA FX DEBT-Ukraine tensions keep C$ confined

* Canadian dollar at C$1.0987 or 91.02 U.S. cents
    * Bond prices higher across the maturity curve

    By Leah Schnurr
    TORONTO, May 5 (Reuters) - The Canadian dollar was little
changed against the greenback on Monday, hemmed in by the
continued tension in Ukraine and weak Chinese manufacturing
    Investors were also wary of taking aggressive bets with some
key domestic economic data on tap later in the week, including
March trade balance figures and the April unemployment report.
    Ukraine sent a new special forces unit into the southern
port city of Odessa, following a weekend of violence that killed
    "Markets are very much in risk-off mode and we're seeing
investors and traders look toward safe-haven asset classes on
the questionable escalation of tensions over the weekend in
Ukraine," said Scott Smith, senior market analyst at Cambridge
Mercantile Group in Calgary.
    "It seems at this point that Ukraine is one potential action
away from an all-out civil war."
    Risk appetite has been bruised in recent months as investors
have watched tensions escalate in the region. 
    The Canadian dollar was at C$1.0987 to the
greenback, or 91.02 U.S. cents, slightly weaker than Friday's
close of C$1.0980, or 91.07 U.S. cents.
    Overnight, data showed activity in China's manufacturing
sector contracted for a fourth month in a row in April,
underscoring the view that China's economy has lost some
    The loonie is often affected by data from China, which is
the world's second-largest economy and a major consumer of
natural resources. 
    The economic data at home this week will be watched for what
impact it may have on the direction of Bank of Canada monetary
policy. The central bank has taken a neutral stance since last
October and has flagged its concern about weak inflation and
    Trade balance numbers will be released on Tuesday, while the
labor market report will close out the week on Friday. 
    "The big thing people are watching for tomorrow are the
trade the balance numbers. They're going to be a big driver,
with the Bank of Canada focusing so much on export growth,"
Smith said.
    Canadian government bond prices were higher across the
maturity curve, with the two-year up 1 Canadian cent
to yield 1.061 percent and the benchmark 10-year up
9 Canadian cents to yield 2.342 percent.

 (Editing by Peter Galloway)