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

* C$ at C$0.9888 vs US$, or $1.0113
    * Weighed down by euro zone factory data, U.S. ADP
    * Bond prices rise across curve

    By Jennifer Kwan	
    TORONTO, May 2 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Wednesday as a downturn in euro
zone manufacturing activity and disappointing U.S. private
sector jobs data mad e 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, including commodity-linked currencies like the Canadian
dollar, wa s data that showed U.S. private employers added far
fewer jobs than expected in April, a reading that could also
keep stocks under pressure in the North American session.
    "It did weaken off slightly this morning on the
weaker-than-expected ADP employment report. But it still remains
confined to a C$0.9800 to C$0.9900 range, likely for the next
day and a half," said Blake Jespersen, a managing director of
foreign exchange sales at BMO Capital markets.	
    At around 8:50 a.m. (1250 GMT), the Canadian currency
 was at C$0.9888 against the greenback, or $1.0113, down
slightly from its Tuesday's finish at C$0.9858 a g ainst the
greenback, or $1.0144.	
    The latest reports contrasted with upbeat U.S. manufacturing
data on Tuesday that helped ease investor concerns about the
economic outlook of Canada's largest trading partner.
    Jespersen said he expected trading to remain light for the
remainder of the day ahead of key U.S. jobs data later in the
    "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
b y 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 7 Canadian cents to yield 1.296
percent, while the benchmark 10-year bond rose 27
Canadian cents to yield 2.017 percent.