CANADA FX DEBT-Canadian dollar lags most G10 rivals ahead of U.S. jobs data

*

Loonie trades in a range of 1.3584 to 1.3619

*

BoC's Gravelle calls for more housing construction

*

Canadian bond yields rise across much of the curve

By Fergal Smith

TORONTO, Dec 7 (Reuters) - The Canadian dollar was little changed against its U.S. counterpart on Thursday, while it lost ground against most other G10 currencies, as investors awaited Friday's U.S. employment report for clues on the interest rate outlook.

The loonie was trading nearly unchanged at 1.3590 to the greenback, or 73.58 U.S. cents, after moving in a range of 1.3584 to 1.3619.

Among G10 currencies, the Swiss franc was the only other currency not to gain ground against the U.S. dollar as a surprisingly clear hint at a shift in policy by Japanese monetary authorities bolstered the yen.

"All eyes now are on the nonfarm payrolls data," said Rahim Madhavji, president at KnightsbridgeFX.com.

Traders are trying to determine if the U.S. economy is still running hotter than the Canadian economy and could that put pressure on the Bank of Canada to cut interest rates ahead of the Federal Reserve, Madhavj said.

Canada's economy unexpectedly contracted at an annualized rate of 1.1% in the third quarter, avoiding a recession, but most economists forecast that upcoming mortgage renewals at higher rates will take another chunk out of growth next year.

Money markets expect the Canadian central bank to begin cutting interest rates in the coming months after the bank on Wednesday left its benchmark interest rate on hold at 5% for a third straight meeting.

BoC Deputy Governor Toni Gravelle spoke on Thursday, calling for policy changes to spur more housing construction and reduce pressure on inflation caused by a lack of shelter, especially at a time of record immigration.

Canadian government bond yields rose across much of the curve. The 10-year was up 2.1 basis points at 3.304%, after touching on Wednesday its lowest intraday level since June 30 at 3.264%. (Reporting by Fergal Smith; editing by Diane Craft)