(Adds strategist quotes and details throughout; updates prices)
* Canadian dollar rises 0.6% against the greenback
* Canada's economy adds 62,000 jobs in November
* Loonie gains 1.6% for the week
* Price of U.S. crude settles 1.4% higher
* Canada's 10-year yield posts a 3-week high at 0.798%
TORONTO, Dec 4 (Reuters) - The Canadian dollar strengthened
to a two-year high against its U.S. counterpart on Friday as
Wall Street rose and data showed Canada's economy added more
jobs than expected in November, with the currency advancing for
the third straight week.
Canadian employment rose by 62,000 in November and the
unemployment rate fell to 8.5%, both beating analyst
expectations. The market also digested U.S. data showing the
smallest nonfarm payrolls gain since the jobs recovery started
The "divergence" between the U.S. and Canadian employment
reports bolstered the Canadian dollar, said Amo Sahota, director
at Klarity FX in San Francisco.
The expectation "that the dire U.S. jobs report will force
U.S. lawmakers to compromise and push through federal stimulus
is driving equities higher and the USD lower," Sahota said.
Wall Street's main indexes rose to all-time highs and the
price of oil, one of Canada's major exports, climbed 1.4% to
$46.26 a barrel.
The Canadian dollar was trading 0.6% higher at 1.2785
per greenback, or 78.22 U.S. cents. It was the first time since
October 2018 that the currency had traded above 78 U.S. cents.
For the week, the loonie was up 1.6%.
Strategists have raised their forecasts for the Canadian
dollar, expecting the currency to benefit from domestic economic
stimulus and the rollout of a COVID-19 vaccine, a Reuters poll
A separate Reuters poll showed that the Bank of Canada will
not increase its asset-purchase program anytime soon. The
central bank is due to make an interest rate decision next
That will give the BoC an opportunity to comment on the
stronger Canadian dollar, Sahota said.
Canadian government bond yields were higher across a steeper
curve. The 10-year rose 6 basis points to 0.798%,
which was its highest since Nov. 13.
(Reporting by Fergal Smith; Editing by Jonathan Oatis and Nick