* Canadian dollar strengthens 0.2% against the greenback
* Loonie trades in a range of 1.2450 to 1.2498
* Price of U.S. oil rises 0.2%
* Canadian 2-year yield climbs to highest since March 2020
By Fergal Smith
TORONTO, Oct 12 (Reuters) - The Canadian dollar edged higher
against its U.S. counterpart on Tuesday as oil prices held near
multiyear highs and recent domestic jobs data supported the case
for another cut later this month to the Bank of Canada's bond
purchase program.
The loonie was trading 0.2% higher at 1.2463 to the
greenback, or 80.24 U.S. cents, after trading in a range of
1.2450 to 1.2498. On Monday, the currency touched its strongest
level since July 30 at 1.2444.
"We think there may be a little more to come from the CAD
ahead of the year-end," strategists at Scotiabank, including
Shaun Osborne, said in a note.
"A monster jobs report last Friday, firm crude oil prices
... bolster the case for further reduction in BoC asset
purchases at the October 27th policy meeting."
Data on Friday showed that the Canadian economy posted a
gain of 157,000 jobs in September, pushing employment back to
its pre-pandemic levels.
The Bank of Canada is due on Oct. 27 to make an interest
rate announcement and update its economic forecasts.
The price of oil , one of Canada's major exports, rose
0.2% to $80.65 a barrel after touching on Monday a seven-year
high at $82.18.
Still, speculators have raised their bearish bets on the
Canadian dollar, data from the U.S. Commodity Futures Trading
Commission showed on Friday. As of Oct. 5, net short positions
had increased to 26,866 contracts from 20,235 in the prior week.
Canadian government bond yields were higher across much of a
flatter curve as trading resumed following Monday's Thanksgiving
Day holiday.
The 2-year yield climbed 4 basis points to 0.730%. That was
its highest level since March 2020 and 38.6 basis points above
its U.S. equivalent, the widest gap since January 2015.
(Reporting by Fergal Smith; editing by Jonathan Oatis)
