November 3, 2016 / 2:17 PM / in a year

CANADA FX DEBT-C$ edges higher as risk appetite stabilizes

* Canadian dollar at C$1.3386, or 74.70 U.S. cents
    * Bond prices lower across the yield curve

    TORONTO, Nov 3 (Reuters) - The Canadian dollar strengthened
slightly against its U.S. counterpart on Thursday as risk
appetite stabilized, but the loonie traded in a narrow range
ahead of domestic employment and trade data on Friday.
    Modest gains for the Canadian dollar came as a British court
ruled that parliament must approve a government decision to
trigger Britain's exit from the European Union. That lifted
European stocks and bond yields and eased some tension in
markets rattled by U.S election nerves. 
    Canada's employment and trade reports are due on Friday and
will be watched closely by investors for clues on the interest
rate outlook after the Bank of Canada acknowledged recently it
had considered a rate cut at its policy meeting.
    The labor market is expected to have shed 10,000 jobs in
October after a hefty gain the month before, while the September
trade deficit is expected to narrow to C$1.7 billion. 
    At 10:03 a.m. EDT (1403 GMT), the Canadian dollar 
was trading at C$1.3386 to the greenback, or 74.70 U.S. cents,
slightly stronger than Wednesday's close of C$1.3395, or 74.65
U.S. cents.
    The currency's strongest level of the session was C$1.3362,
while its weakest was C$1.3401.
    On Friday, it touched its weakest level in seven months at
C$1.3434.
    U.S. crude prices were down 0.04 percent to $45.32 a
barrel as doubts that a glut in global oil supplies could be
reduced offset news of an attack on a Nigerian pipeline. 
    Oil is one Canada's major exports.   
    Canadian government bond prices were lower across the yield
curve in sympathy with U.S. Treasuries. The two-year 
fell 1.5 Canadian cents to yield 0.553 percent and the benchmark
10-year declined 20 Canadian cents to yield 1.207
percent.

 (Reporting by Fergal Smith; Editing by Bernadette Baum)

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