CANADA FX DEBT-Canadian dollar steadies as US labor data signals weakness

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Loonie trades in a range of 1.4091 to 1.4140

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Price of US oil decreases 0.4%

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Ivey PMI falls to 52.4 in October

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Bond yields decline across the curve

By Fergal Smith

TORONTO, Nov 6 (Reuters) - The Canadian dollar was on the cusp of ending a five-day losing streak on Thursday as signs of weakness in the U.S. labor market led to broad-based declines for the greenback.

The loonie was trading nearly unchanged at 1.4110 per U.S. dollar, or 70.87 U.S. cents, after moving in a range of 1.4091 to 1.4140. "Today's very poor Challenger job cuts number for October is further evidence the U.S. labor market is not moving in the right direction, and the bond market is finally waking up," said Erik Bregar, director of FX & precious metals risk management at Silver Gold Bull. The U.S. dollar fell against a basket of major currencies as a report by Challenger, Gray & Christmas showed that U.S.-based employers cut more than 150,000 jobs in October, marking the biggest reduction for the month in more than 20 years. That report increased expectations of another U.S. interest rate cut this year. Federal Reserve Chair Jerome Powell tempered those expectations last week after the central bank cut rates, saying another reduction in borrowing costs at the December 9-10 policy meeting was not a foregone conclusion. The Canadian dollar is set to strengthen over the coming year as expected Fed rate cuts weigh on the U.S. dollar and trade uncertainty potentially becomes less of a drag on Canada's economy, a Reuters poll found. Canadian economic activity expanded at a slower pace in October as a measure of prices edged higher, Ivey Purchasing Managers Index (PMI) data showed. The seasonally adjusted index fell to 52.4 last month from 59.8 in September. The price of oil, one of Canada's major exports, was trading 0.4% lower at $59.37 a barrel as investors weighed a potential supply glut and weakened demand in the U.S. market.

Canadian government bond yields moved lower across the curve, tracking moves in U.S. Treasuries. The 10-year was down 6.3 basis points at 3.105%. (Reporting by Fergal Smith; Editing by Paul Simao)