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Canadian dollar gains 0.1% against the greenback

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Price of U.S. oil increases 1.5%

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10-year yield rises 4.4 basis points

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Curve moves closer to disinversion

By Fergal Smith

TORONTO, Sept 9 (Reuters) - The Canadian dollar

strengthened against its U.S. counterpart on Monday as Wall

Street rallied, but the move was limited ahead of a speech by

Bank of Canada Governor Tiff Macklem that could offer clues on

the pace of interest rate cuts.

The loonie was trading 0.1% higher at 1.3553 to the

U.S. dollar, or 73.78 U.S. cents, after hitting a two-week low

on Friday at 1.3582.

"The Canadian dollar's recovery today is not really about

good developments coming out of Canada," said Marc Chandler,

chief market strategist at Bannockburn Global Forex LLC.

"Today's move is primarily respecting that the 1.36 level

held and we've got a jump in U.S. stocks today. We've got a

risk-on mode."

Wall Street's main stock indexes rebounded from a week of

steep losses, as focus shifted back to the size of interest rate

cuts by the Federal Reserve in 2024 and a crucial inflation

report due on Wednesday.

Canada is a major producer of commodities, including oil, so

the currency tends to be sensitive to shifts in investor

sentiment. U.S. crude oil futures were trading 1.5%

higher at $68.67 a barrel.

Macklem is due to speak on Tuesday in London, United Kingdom

on the topic of global trade, after saying last Wednesday that a

larger interest rate cut could be in order if the economy needs

a boost.

Data on Friday showed the unemployment rate climbing to

6.6%, its highest level in seven years excluding the pandemic

years of 2020 and 2021.

Canadian government bond yields were mixed as the curve

moved closer to disinversion. The 2-year eased 2

basis points to 3.030%, while the 10-year was up 4.4 basis

points at 3.010%.

The 10-year has traded below the 2-year since July 2022.