* Canadian dollar strengthens 0.1% against the greenback
* Loonie trades in a range of 1.2581 to 1.2627
* Price of U.S. oil falls 0.7%
* Canadian bond yields ease across a flatter curve
TORONTO, April 8 (Reuters) - The Canadian dollar edged
higher against its U.S. counterpart on Thursday, recovering from
a one-week low, as data showing an unexpected rise in the number
of Americans filing new claims for unemployment benefits weighed
on the greenback.
The U.S. dollar fell against a basket of major
currencies after initial claims for state unemployment benefits
totaled a seasonally adjusted 744,000 for the week ended April
3, up from 728,000 in the prior week.
The greenback was also pressured by reassurance on Wednesday
from the Federal Reserve that its bond-buying support for
economic recovery will not be ending anytime soon.
The Canadian dollar was trading 0.1% higher at 1.2600
to the greenback, or 79.37 U.S. cents, having traded in a range
of 1.2581 to 1.2627. On Wednesday, it touched its weakest
intraday level since March 31 at 1.2634.
Canada's employment report for March, due on Friday, could
offer clues on the Bank of Canada's policy outlook. The central
bank has become more upbeat about prospects for economic growth,
while some strategists expect it to cut bond purchases at its
next interest rate announcement on April 21.
On a more cautious note for the economy, Ontario, Canada's
most populous province, began a four-week stay-at-home order and
closed in-store shopping for non-essential retailers as it
battles a third wave of the COVID-19 pandemic.
The price of oil, one of Canada's major exports, fell after
official data showed a big increase in U.S. gasoline stocks.
U.S. crude oil futures were down 0.7% at $59.33 a barrel.
Canadian government bond yields were lower across a flatter
curve, with the 10-year down 2.3 basis points at
1.479%. On Wednesday, it touched a nine-day low at 1.460%.
(Reporting by Fergal Smith;
Editing by Alison Williams)
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