CANADA FOREX-C$ pares losses on U.S. jobs data; climbs for 2nd week

* Canadian dollar ends at C$1.3028, or 76.76 U.S. cents
    * Loonie rises 0.8 percent for the week
    * Bond prices mixed across the yield curve

    By Fergal Smith
    TORONTO, Feb 3 (Reuters) - The Canadian dollar weakened
slightly against its U.S. counterpart on Friday but clawed back
some losses after U.S. jobs data showed tepid wage growth, while
the loonie ended higher for the second straight week.
    U.S. job growth surged more than expected in January, but a
smaller-than-expected increase in wages reduced pressure on the
Federal Reserve to raise rates in the near term. 
    "All the details were disappointing, so when the market
figured that out then we came lower (for the U.S. dollar)," said
Greg Anderson, global head of foreign exchange strategy at BMO
Capital Markets.
    "The market came to the realization it takes the March rate
hike off the table."
    U.S. crude prices settled 29 cents higher at $53.83 a
barrel after the United States imposed sanctions on some Iranian
individuals and entities. 
    Oil is one of Canada's major exports.
    The Canadian dollar ended at C$1.3028 to the
greenback, or 76.76 U.S. cents, slightly weaker than Thursday's
close of C$1.3020, or 76.80 U.S. cents.
    The currency traded in a range of C$1.2993 to C$1.3083.
    For the week, the loonie gained 0.8 percent, helped by
domestic data that showed the economy expanded faster than
expected in November and the manufacturing sector grew at its
fastest pace in over two years in January, while it has been
absent from a list of currencies attracting the ire of U.S.
President Donald Trump.
    It was the second straight week that the Canadian dollar had
ended higher and the fifth in the last six weeks. On Tuesday, it
touched its strongest in more than four months at C$1.2969, 
    Speculators increased bullish bets on the Canadian dollar,
data from the Commodity Futures Trading Commission and Reuters
calculations showed. Canadian dollar net long positions rose to
3,472 contracts as of Jan. 31 from 2,519 a week earlier.
    But BMO's Anderson sees value in selling the Canadian dollar
near its current level, mindful that a shift in U.S. corporate
tax policy this year could boost the greenback.    
    Canadian government bond prices were mixed across the yield
curve, with the two-year flat to yield 0.775 percent
and the 10-year falling 2 Canadian cents to yield
1.767 percent.
    The Canadian economy created slightly more jobs than
previously thought in 2016, with much of the growth coming from
part-time employment. 
    Canada's budget watchdog forecast that the government will
have a smaller-than-expected deficit in the current fiscal year.

 (Reporting by Fergal Smith; Editing by Cynthia Osterman)