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CANADA FX DEBT-C$ retreats from 10-day high amid U.S. political uncertainty

By Fergal Smith

(Adds details on activity, updates prices) * Canadian dollar trades near flat against the greenback * Loonie touches an earlier 10-day high at 1.3232 * Canadian July average weekly earnings rise 2.7% year-over-year * Canadian bond prices climb across a flatter yield curve By Fergal Smith TORONTO, Sept 26 (Reuters) - The Canadian dollar was little changed against its U.S. counterpart on Thursday, with the currency pulling back from an earlier 10-day high as investors weighed U.S. political uncertainty. Stocks fell, while safe-haven assets such as the U.S. dollar and Treasuries rose after a congressional panel released a whistleblower complaint that accused President Donald Trump of pressing a foreign government to investigate a potential rival in next year's presidential election. At 4 p.m. (2000 GMT), the Canadian dollar was trading nearly unchanged at 1.3273 to the greenback, or 75.34 U.S. cents. The loonie, which touched its strongest intraday level since Sept. 16 at 1.3232, gained against all the other G10 currencies except the New Zealand dollar . Relative strength for the loonie came as data from Statistics Canada showed that Canadian average weekly earnings rose by 2.7% year-over-year in July after a 2.1% gain in June and that the number of non-farm payroll employees increased by 75,400. Stronger-than-expected wholesale trade and payrolls data "should have forecasts for next week's monthly GDP release moving up into positive territory and keeping Q3 tracking around the 2% mark," Royce Mendes, a senior economist at CIBC Capital Markets, said in a note. Data on Monday showed that Canadian wholesale trade increased by 1.7% in July from June, surprising economists who had forecast a 0.1% decrease. The U.S. House of Representatives is proceeding with efforts regarding the Trump administration's trade deal with Mexico and Canada, House Speaker Nancy Pelosi told reporters, saying Democrats in the chamber had discussed the pact a day earlier. The price of oil, one of Canada's major exports, was largely flat after a Pentagon statement intensified concerns of a Middle East conflict disrupting supply. U.S. crude oil futures settled 0.1% lower at $56.41 a barrel. Canadian government bond prices were higher across a flatter yield curve in sympathy with U.S. Treasuries. The two-year rose 3.5 Canadian cents to yield 1.577% and the 10-year was up 40 Canadian cents to yield 1.362%. On Wednesday, the 10-year yield hit its lowest intraday level since Sept. 6 at 1.289%. (Reporting by Fergal Smith; Editing by Nick Zieminski and Peter Cooney)