* Canadian dollar strengthens 0.4% against the greenback
* Loonie trades in a range of 1.2525 to 1.2594
* Price of U.S. oil falls 1.8%
* Canadian bond yields rise across a steeper curve
TORONTO, April 5 (Reuters) - The Canadian dollar rose
against its broadly weaker U.S. counterpart on Monday as data
showing a surge in U.S. employment bolstered investor sentiment,
offsetting a drop in oil prices.
Global stock prices rose to a 1 1/2-month high
after the U.S. labor department said on Friday that nonfarm
payrolls surged by 916,000 jobs last month, the biggest gain
since last August.
Canada sends about 75% of its exports to the United States,
including oil. U.S. crude oil futures were down 1.8% at
$60.37 a barrel as rising supply from OPEC+ and higher Iranian
output countered signs of a strong economic rebound in the
United States.
The Canadian dollar was trading 0.4% higher at 1.2526
to the greenback, or 79.83 U.S. cents, having traded in a range
of 1.2525 to 1.2594.
April has tended to be a seasonally strong month for the
loonie. The currency has gained ground in eight of the last 10
Aprils.
Analysts have raised their Canadian dollar forecasts for the
coming year, expecting the currency to benefit from faster
growth in the domestic economy and a potential reduction by the
Bank of Canada of its bond purchases, a Reuters poll showed.
The U.S. dollar fell against a basket of major
currencies, after having posted its best quarter against major
currencies in almost three years in January-March thanks to an
improving U.S. economy and rising Treasury yields.
Canadian government bond yields were higher across a steeper
curve, with the market reacting to the U.S. jobs data after it
was closed for the Good Friday holiday. The 10-year
rose 4.4 basis points to 1.557%.
Canada's trade report for February is due on Wednesday,
while the March employment report is due on Friday.
(Reporting by Fergal Smith; Editing by Nick Zieminski)
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