* Rises as high as C$1.1615 to the U.S. dollar
* Fewer Canadian jobs lost in June than expected
* Bond prices higher across curve
By Frank Pingue
TORONTO, July 10 (Reuters) - The Canadian dollar was lower versus the U.S. currency on Friday as early gains made after a domestic jobs report beat expectations were handed back as a closer look at details of the report revealed weakness.
Canada's currency rallied as high as C$1.1615 to the U.S. dollar, or 86.09 U.S. cents, after data showed fewer Canadians lost their jobs in June than expected. [ID:N10253705]
But the domestic currency quickly relinquished all the gains and turned lower versus its U.S. counterpart as the report also revealed that the only strength came from part-time employment and that recession still gripped the economy.
"You got the people that react immediately to what the headline is regardless of the details, but it didn't take long to look into the details to realize that this was not a strong report." said David Watt, senior currency strategist at RBC Capital Markets. "If anything, it was a very weak report."
By the 7:50 a.m. (1150 GMT), the Canadian unit had fallen back to C$1.1632 to the U.S. dollar, or 85.97 U.S. cents, down from C$1.1623 to the U.S. dollar, or 86.04 U.S. cents, at Thursday's close.
Once it gave up the post-data gains, it fell as low as C$1.1645 to the U.S. dollar, or 85.87 U.S. cents, before recovering slightly.
It could be stuck lower for the remainder of the session as commodity prices, often key drivers of the Canadian currency given the nature of Canada's exports, were lower.
Oil prices fell below $60 a barrel and were poised for their biggest weekly fall since January as traders focused economic uncertainty. [ID:nSP476597] Gold, down 2 percent this week, fell further given a stronger greenback. [ID:nLA430812]
"A lot will depend on oil prices, but I don't think that the employment report is going to give any lift to the Canadian dollar by the end of the day.
Barring a sharp turnaround, the Canadian dollar will close lower for the fourth straight week.
Bond prices remained higher across the curve as they managed to shrug off the jobs data and follow the bigger U.S. Treasury bond market up given investor relief that this week's $73 billion worth of bond auctions in the United States were out of the way. (Editing by Jeffrey Hodgson)