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The Canadian dollar edged lower against its U.S. counterpart on Wednesday, trading in a narrow range as investors awaited the outcome of trade talks between the United States and China and Canada’s jobs report loomed at the end of the week.

At 9:08 a.m. (1408 GMT), the Canadian dollar was trading 0.1 per cent lower at 1.3170 to the greenback, or 75.93 U.S. cents. The currency, which notched a six-day high at 1.3116 on Tuesday, traded in a range of 1.3140 to 1.3176.

Global stock markets steadied near record highs, supported by rising optimism about a U.S.-China trade deal this month and global business surveys indicating that tariff-hit manufacturing sentiment has troughed.

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Canada is a major exporter of commodities, including oil, so its economy could benefit from an improved outlook for global trade.

U.S. crude oil futures were up 0.1 per cent at $57.28 a barrel, turning higher after being pressured by a larger-than-expected build in U.S. crude stocks and weak euro zone economic figures.

Canada’s employment report for October is due on Friday, which can help guide expectations for the Bank of Canada policy outlook.

Last week, the central bank left its benchmark interest rate on hold at 1.75 per cent as it cut its economic growth forecasts and expressed concern about trade uncertainty.

Canadian government bond prices were higher across the yield curve in sympathy with U.S. Treasuries. The two-year rose 5.5 Canadian cents to yield 1.61 per cent and the 10-year was up 35 Canadian cents to yield 1.57 per cent.

On Tuesday, the 10-year yield reached a one-week intraday high at 1.616 per cent.

Ontario, Canada’s most populous province and manufacturing heartland, was due to release a fiscal update on Wednesday afternoon. Finance Minister Rod Phillips has indicated the deficit for the current fiscal year, which ends on March 31, will be lower than the C$10.3 billion shortfall estimated in April’s budget.

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