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CANADA FX DEBT-C$ weakens as trade spat offsets strong jobs gain

    * Canadian dollar falls 0.4% against the greenback
    * Canada adds 418,500 jobs in July
    * Price of U.S. oil falls 0.7% 
    * Canada's 10-year yield eases to 0.458%

    TORONTO, Aug 7 (Reuters) - The Canadian dollar fell against
its broadly stronger U.S. counterpart on Friday as a trade
squabble between Canada and the United States offset
stronger-than-expected domestic jobs data, with the loonie
giving back some of this week's gains.
    Ottawa pledged retaliation after U.S. President Donald Trump
on Thursday moved to reimpose 10% tariffs on some Canadian
aluminum products to protect U.S. industry from a "surge" in
imports.             
    Canada added 418,500 jobs in July, mostly part-time, and the
unemployment rate fell to 10.9% as the economy continued to
reopen, Statistics Canada said. Analysts had predicted a gain of
400,000 jobs.             
    Jobs data was also stronger than expected in the United
States, with nonfarm payrolls increasing by 1.763 million jobs
last month.                 
    The Canadian dollar        was trading 0.4% lower at 1.3360
to the greenback, or 74.85 U.S. cents. The currency traded in a
range of 1.3284 to 1.3372. For the week, it was on track to rise
0.4%. 
    The decline for the loonie on Friday came as Trump's move to
ban transactions with the Chinese owners of two popular mobile
apps weighed on stocks globally and boosted the U.S. dollar.
            
    Canada runs a current account deficit and is a major
exporter of commodities, including oil, so the loonie tends to
be sensitive to the global flow of trade and capital.
    U.S. crude oil futures        fell 0.7% to $41.67 a barrel
on worries that recovery of demand would slow due to a
resurgence of coronavirus cases.             
    Canada's 10-year bond yield             eased less than half
of a basis point to 0.458%, holding near its lowest level since
March.

 (Reporting by Fergal Smith; Editing by Steve Orlofsky)
  
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