CANADA FX DEBT-C$ slips on jobs data as G7 leaders meet

 (Adds strategists' quotes, details on activity; updates prices)
    * Canadian dollar at C$1.2983, or 77.02 U.S. cents
    * Canadian jobs fall 7,500 jobs in May 
    * Price of U.S. oil falls 0.1 percent
    * Bond prices lower across steeper yield curve

    By Fergal Smith
    TORONTO, June 8 (Reuters) - The Canadian dollar dipped
against its broadly stronger U.S. counterpart on Friday after
weaker-than-expected domestic jobs data, as investors braced for
a likely acrimonious G7 meeting and weighed a shift to the right
by voters in Ontario.
    The Canadian economy unexpectedly shed 7,500 jobs in May as
hiring declined in the manufacturing and construction sectors,
data from Statistics Canada showed. Economists had forecast a
gain of 17,500 jobs.
    But wages rose at their strongest annual pace in nearly six
years, which could give the Bank of Canada room to raise
interest rates as soon as July.                 
    "From a policy perspective, I think it ends up being a wash,
said Robert Kavcic, senior economist at BMO Capital Markets. "It
was a very soft headline but wage growth is obviously something
the Bank of Canada is looking at."
    Expectations for an interest rate hike in July were little
changed at about 70 percent after the data.           
    The Group of Seven meeting of rich nations is almost certain
to be marked by the clash of a combative U.S. President Donald
Trump and other leaders when they pressure him to lift sanctions
on steel and aluminum they fear could lead to a trade war.
    The U.S. dollar        climbed against a basket of major
currencies, while stocks and other risk-sensitive assets lost
ground ahead of the meeting.             
    At 9:26 a.m. EDT (1326 GMT), the Canadian dollar         
was trading 0.1 percent lower at C$1.2983 to the greenback, or
77.02 U.S. cents. The currency traded in a range of C$1.2970 to
    The price of oil, one of Canada's major exports, fell as
weakening demand in China and surging U.S. output weighed on
markets. U.S. crude        prices were down 0.1 percent at
$65.91 a barrel.                 
    The Conservatives, led by populist Doug Ford running for
premier, claimed a sweeping victory in Canada's most populous
province, Canadian networks reported. Investors are searching
for an economic blueprint for the right-leaning party.
    The gap between Ontario's 10-year yield and the equivalent
maturity Quebec bond was 0.5 of a basis point narrower at a
spread of 5 basis points.
    "Nothing that really signals a major reaction to the
election," said Maria Berlettano, head of Canadian government
credit strategy at CIBC Capital Markets.
    Canadian government bond prices were lower across a steeper
yield curve, with the 10-year             falling 28 Canadian
cents to yield 2.316 percent.

 (Reporting by Fergal Smith; Editing by Steve Orlofsky and Bill