* Canadian dollar at C$1.0889, or 91.84 U.S. cents
* 10-year bond yield lowest since May 2013
(Adds details, quotes, updates prices)
By Leah Schnurr
TORONTO, Aug 15 (Reuters) - The Canadian dollar firmed
against the greenback on Friday after revised data showed
Canada's economy added far more jobs in July than previously
reported, but the currency's rise was tempered by concerns over
an escalation of tensions in Ukraine.
Statistics Canada said 41,700 net jobs were created in July,
exceeding economists expectations and a far cry from the 200
jobs it said were added for the month in a report last week. It
withdrew the earlier report over what it described as a flaw in
the way the figures had been processed.
The revised jobs data, along with unexpectedly better June
factory sales figures, sent Canada's loonie to its highest level
against the U.S. dollar in more than two weeks, where it briefly
broke through both its 100- and 200-day moving averages.
But the momentum stalled after Ukraine said its forces had
destroyed part of a Russian armored column that entered its
territory overnight.
"This is the interplay between economic fundamentals, as
revised as they are, and geopolitics," said David Tulk, chief
Canada macro strategist at TD Securities in Toronto.
"The overarching theme is one where risk-off tends to
dominate, and that unfortunately leaves Canada caught in the
crossfire."
The Canadian dollar ended the North American
session at C$1.0889 to the greenback, or 91.84 U.S. cents,
compared to Thursday's close of C$1.0903, or 91.72 U.S. cents.
The loonie fell sharply last Friday following the first
release of the jobs report, but it drifted higher this week to
gain 0.8 percent on the week.
Canadian retail sales and inflation data are the highlights
of Canada's economic calendar next week, with both reports due
to be released on Friday.
Investors also will eye the release of the minutes from the
U.S. Federal Reserve's July policy meeting on Wednesday as well
as the annual gathering of central bankers and economists in
Jackson Hole later in the week.
"I think unfortunately it's tough to see from a Canadian
perspective how we can really potentially strengthen the loonie
from here, just given that the data may be on the weak side,"
Tulk said.
"It's obviously a (U.S.) dollar story, so if the Fed sounds
a little more upbeat, that could certainly have an implication."
Geopolitical tensions sent Canadian government bond yields
lower across the maturity curve in sympathy with a drop in U.S.
Treasuries yields.
The yield on the benchmark 10-year Canadian bond
hit 2.016 percent, its lowest level since May 2013, while the
two-year was 2-1/2 Canadian cents higher to yield
1.054 percent.
(Editing by Paul Simao)