* C$ rises to 95.05 U.S. cents
* Bonds flat to lower across curve
* Canada October GDP up, but slightly weaker than forecast (Updates with price activity after GDP data, additional comment)
TORONTO, Dec 23 (Reuters) - The Canadian dollar was firmer against the U.S. currency on Wednesday morning, lifted by rising oil prices and hopes for a solid economic recovery.
The currency pared some gains after data showed Canada's economy grew at a slower pace than expected, although analysts said the details of the GDP report were encouraging as it marked the first back-to-back monthly gain in two years.
The economy grew by 0.2 percent in October from September, the second consecutive monthly increase, but below analysts expectations for a 0.3 percent increase from September. [ID:nN23149061]
Canada officially emerged from recession in the third quarter of this year.
"It was slightly below consensus, attracting some bids into dollar/Canada but nothing dramatic," said Jack Spitz, managing director of foreign exchange at National Bank Financial.
"There is clearly a directional bias to buy North American and sell Europe."
At 9:53 a.m. (1453 GMT), the Canadian dollar was at C$1.0521 to the U.S. dollar, or 95.05 U.S. cents, recovering from its post-GDP move, and was up from Tuesday's finish at C$1.0579 to the U.S. dollar, or 94.53 U.S. cents.
Major North American stock indexes opened higher, while the price of oil, a key Canadian export, headed above $75 a barrel.
Lingering effects of U.S. data on Tuesday, which showed November sales of previously owned homes jumped to their highest level in nearly three years, helped world equity markets advance. The data offered the latest evidence that the U.S. housing market -- the main trigger of the worst U.S. recession in 70 years -- was on the mend. [MKTS/GLOB]
Strength in equities and oil are often key supports to the Canadian dollar, and were main reasons behind the overnight move higher.
"Our currency is bucking the general trend of other currencies weakening against the greenback. It's a North America play. We are seeing better economic numbers in Canada and the U.S.," said Sal Guatieri, senior economist, BMO Capital Markets.
"The sense is, if the U.S. economy is recovering, that supports Canadian exports and our currency. We get a bigger bang for our buck from good U.S. economic data."
While ongoing optimism about the recovery added to positive momentum for the currency, market watchers cautioned that price moves across most markets are easily swayed by thin pre-holiday trade.
BONDS LITTLE CHANGED
Canadian bond prices were little changed to lower across the curve after a short-lived boost from the slight miss on the GDP data. Rising equity markets also took attention away from fixed income.
The two-year government bond