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Loonie touches one-week low at 1.3762

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Price of U.S. oil settles 0.8% higher

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Canadian bond yields rise across the curve

By Fergal Smith

TORONTO, May 8 (Reuters) - The Canadian dollar steadied

near an earlier one-week low against its U.S. counterpart on

Wednesday as the greenback notched broad-based gains and ahead

of domestic jobs data this week that could inform the timing of

expected interest rate cuts.

The loonie was trading nearly unchanged at 1.3725 to

the U.S. dollar, or 72.86 U.S. cents, after touching its weakest

intraday level since May 1 at 1.3762.

"With no major macroeconomic data releases for traders to

get their teeth into, the Canadian dollar is trading defensively

against a still-strong greenback," said Karl Schamotta, chief

market strategist at Corpay.

"Friday's Canadian jobs number looms as the next potential

volatility catalyst, but even there markets are well prepared

for a print that confirms continued (economic) underperformance

relative to the United States."

Canada's employment report for April is expected to show the

economy adding 18,000 jobs and the unemployment rate increasing

to 6.2%.

The U.S. dollar gained for a third straight day

against a basket of major currencies as investors bet on the

U.S. economy outperforming peers.

More supportive of the loonie, the price of oil, one

of Canada's major exports, settled 0.8% higher at $78.99 a

barrel after U.S. oil storage data showed a larger-than-expected

draw in crude stockpiles.

Canadian government bond yields moved higher across the

curve, tracking moves in U.S. Treasuries. The 10-year

was up 3.6 basis points at 3.630%, rebounding after

it touched a near four-week low during Tuesday's session at

3.555%.