* C$ at C$0.9983 vs $US, or $1.0017
* C$ expected to trade between C$0.9950 and parity
* Currency expected to strengthen on U.S. recovery -polls
By Solarina Ho
TORONTO, Feb 6 (Reuters) - The Canadian dollar was weaker
against its U.S. counterpart on Wednesday, as market sentiment
turned cautious before a European Central Bank meeting, but the
currency stayed within recent ranges as investors awaited
Canadian employment figures.
The currency has traded between C$1.0006 and C$0.9949 over
the last few sessions, with encouraging U.S. economic data
keeping the Canadian dollar generally firmer than the U.S.
dollar.
"It's still butting up against exporter offers and the
multitude of broad-based selling just around the parity level.
The dips are still being bought," said Darcy Browne, managing
director, foreign exchange sales at CIBC world markets.
"I'm kind of convinced now we're more likely to stay in the
range ahead of the Canadian employment data this Friday ... the
commodity complex is looking a little tired here right now."
The ECB will meet on Thursday and investors are nervous the
central bank might express concern about the high level of the
euro.
At 9:35 a.m. (1435 GMT), Canada's dollar was
trading at C$0.9983 versus the U.S. dollar, or $1.0017, weaker
than Tuesday's North American session finish of C$0.9962, or
$1.0038.
The Canadian dollar was mixed against other currencies,
hitting a 1-1/2 month high against the Australian dollar
and easing from five month highs against the sterling
.
Canadian monthly employment data is expected to show 5,000
jobs added in January, according to a Reuters poll.
Browne at CIBC said "it's pretty safe you can lean on the
side that we won't have a knock-your-socks off positive number"
and noted that the Bank of Canada lowered its growth
expectations last month.
Browne expected Canada's dollar to trade between C$0.9950
and parity on Wednesday.
A Reuters poll released on Wednesday showed economists and
foreign exchange strategists expected the Canadian dollar to
strengthen over the course of 2013, looking past the central
bank's recent dovish comments and finding support from an
improving U.S. economy.
Canadian government bond prices rose across the curve, with
the two-year Canadian government bond firming about
2.3 Canadian cents to yield 1.160 percent, and the benchmark
10-year bond rising 18 Canadian cents to yield 1.997
percent.