CANADA FX DEBT-C$ weakens on soft euro zone, U.S. ADP data

* C$ ends at C$0.9865 vs US$, or $1.0137
    * Weighed down by euro zone factory data, U.S. ADP
    * Bond prices higher across curve

    By Jennifer Kwan	
    TORONTO, May 2 (Reuters) - Canada's dollar ended slightly
softer against its U.S. counterpart on Wednesday as weaker euro
zone and U.S. economic data made investors more pessimistic
about the global economic outlook.	
    The currency followed the trend overseas that saw the euro
and world shares fall after data showed euro zone factories sank
further into decline last month. 	
    Also weighing on investors' willingness to buy riskier
assets, i ncluding commodity-linked currencies like the Canadian
dollar, was data that showed U.S. private employers added far
fewer jobs than expected in April. 	
    But John Curran, senior vice president at CanadianForex,
said recent ramped-up expectations of a Bank of Canada rate hike
cushioned the currency's fall. 	
    The central bank surprised investors last month with a more
positive domestic economic outlook and an explicit warning that
it may have to start raising rates again. 	
    "People still have it in the back of their minds that (Bank
of Canada Governor) Carney may do something," said Curran.	
    "We're getting some tailwinds from the Carney comments.
People don't really want to believe that he's going to be wrong.
Canada is still doing OK. Comparatively speaking the Canadian
dollar is holding in quite well."	
    The Canadian currency finished at C$0.9865 against
the greenback, or $1.0137, down a hair from T uesday's f inish at
C$0.9858 a g ainst the greenback, or $1.0144.	
    "It did weaken off slightly this morning on the
weaker-than-expected ADP employment report. But it still remains
confined to a C$0.98 to C$0.99 range, likely for the next day
and a half," said Blake Jespersen, a managing director of
foreign exchange sales at BMO Capital markets.	
    Jespersen said he expected trading to remain light ahead of
key U.S. jobs data later in the week.	
    "Investors are just cautious about positioning themselves
ahead of a big number that could lead to a big move," he said.	
    Non-farm payrolls data out Friday is expected to show hiring
by U.S. employers rebounded in April, which could ease fears
that the economy has stumbled into a soft patch. 	
    Businesses outside the farm sector are expected to have
added 170,000 jobs last month, according to a Reuters survey,
after rising a meager 120,000 in March. The unemployment rate is
seen holding at a three-year low of 8.2 percent. 	
    Canadian bond prices climbed across the curve with Canada's
two-year bond up 3 Canadian cents to yield 1.316
percent, while the benchmark 10-year bond gained 20
Canadian cents to yield 2.025 percent.