CANADA FX DEBT-C$ pulls back from 2-year high as investors weigh jobs data

 (Adds analyst quote and details throughout; updates prices)
    * Canadian dollar at C$1.2160, or 82.24 U.S. cents
    * Loonie touches its strongest since May 2015 at C$1.2063
    * Currency advances 1.9 percent for the week
    * 2-year yield touches a six-year high at 1.527 percent

    By Fergal Smith
    TORONTO, Sept 8 (Reuters) - The Canadian dollar retreated on
Friday against its U.S. counterpart, with the currency pulling
back from an earlier two-year high as investors weighed domestic
jobs data and oil prices fell.    
    Canada's economy added 22,200 jobs in August, mostly in
part-time employment.             
    "The underlying details of the report are less positive for
the Canadian dollar," said Eric Viloria, currency strategist at
Wells Fargo.
    Still, a pickup in wage growth could keep the door open to
further interest rate increases from the Bank of Canada after
the central bank hiked on Wednesday for the second time in three
    "I'd put the emphasis upon wages and I think we are on the
path to 2.5 to 3 percent wage growth off into next year," said
Derek Holt, head of capital markets economics at Scotiabank.
    Chances of another rate hike by the end of the year nudged
up to 73 percent from 69 percent before the data, the overnight
index swaps market indicated.           
    Prices of oil, one of Canada's major exports, tumbled more
than 3 percent on worries that energy demand would be hit hard
as Hurricane Irma, one of the most powerful storms in a century,
headed toward Florida and the U.S. Southeast.              
    At 5 p.m. EDT (2100 GMT), the Canadian dollar          was
trading at C$1.2160 to the greenback, or 82.24 U.S. cents, down
0.4 percent.
    The currency's weakest level of the session was C$1.2165,
while it touched its strongest since May 2015 at C$1.2063. For
the week, the loonie advanced 1.9 percent.
    Losses for the loonie on Friday came despite the U.S. dollar
       hitting a more than 2-1/2-year low against a basket of
major currencies. The greenback was pressured by reduced
expectations for another Federal Reserve rate increase this
    Speculators have increased bullish bets on the loonie, data
from the U.S. Commodity Futures Trading Commission and Reuters
calculations showed. Canadian dollar net long positions edged up
to 53,644 contracts as of Sept. 5 from 53,167 a week earlier.
    Canadian government bond prices were lower across the yield
curve, with the two-year            down 8.5 Canadian cents to
yield 1.522 percent and the 10-year             falling 38
Canadian cents to yield 1.983 percent.
    The 2-year yield touched its highest intraday since July
2011 at 1.527 percent, while the gap between the 10-year yield
and its U.S. equivalent narrowed by 5.3 basis points to a spread
of -7.1 basis points, its narrowest since October 2013.

 (Reporting by Fergal Smith; Editing by Meredith Mazzilli and
Jonathan Oatis)