* Canadian dollar falls to 94.81 U.S. cents
* Bond prices turn higher as stocks drop late in the day
* Eye on Friday's U.S., Canadian jobs reports
By Ka Yan Ng
TORONTO, Dec 3 (Reuters) - The Canadian dollar fell for a second straight session on Thursday as investors pruned risky positions ahead of Friday's highly anticipated Canadian and U.S. jobs data.
A weaker oil price and tumbling stock markets also weighed on the currency, which had hit a six-week high earlier this week.
"A bit of weakness filtered into the U.S. markets, and not surprisingly the Canadian dollar is coming under some pressure," said Matthew Strauss, senior currency strategist at RBC Capital Markets.
The Canadian dollar closed at C$1.0547 to the U.S. dollar, or 94.81 U.S. cents, down from C$1.0502 to the U.S. dollar, or 95.22 U.S cents, in the previous session.
Canadian and U.S. jobs data are the priority event on Friday as investors look for further evidence that both economies are on a healing track. The results could also provide a catalyst to spring the Canadian dollar from the trading range of about C$1.04 to C$1.08 it has been in for the past month.
The Canadian dollar is seen having a knee-jerk reaction to the Canadian jobs figures, then resetting for the U.S. figures, due 90 minutes later.
Canada is due to report November employment data on Friday
at 7 a.m. (1200 GMT), and the figures are expected to show a
gain of 15,000 jobs, after a loss of 43,200 in October.
Analysts expect job losses of 130,000 in the United States in
November, down from 190,000 in October.
Market players also digested a mixed bag of economic news on Thursday as well as comments from European Central Bank President Jean-Claude Trichet, who said a forthcoming refinancing operation for banks would be the last. [nECBNEWS] [FRX/] [ID:nN03409987]
BONDS TURN HIGHER
Canadian bond prices ended mainly higher as the pressure they had been under from U.S. weekly jobless claims news early in the day was swept away by declining North American stock markets.
The late-session selloff in North American stocks was compounded by data that showed the U.S. services sector shrank unexpectedly in November. That double-whammy boosted the safe-haven appeal of government debt.
Canadian bonds were weaker in early dealings after weekly data showed the number of U.S. workers filing for first-time jobless benefits slipped in the latest week, adding to hopes the job market is improving and allaying jitters from Wednesday's worse-than-expected private-sector jobs figures.
The two-year government bond