(Adds strategist quote and details throughout; updates prices)
* Canadian dollar falls 0.1% against greenback
* Canadian payroll employment rises by 337,500 in September
* Price of U.S. oil decreases 1.6%
* Canadian bond yields ease across much of a flatter curve
By Fergal Smith
TORONTO, Nov 26 (Reuters) - The Canadian dollar edged lower against the greenback on Thursday as the rally in oil lost some momentum, but the currency held near a two-week high it notched the day before.
The price of oil, one of Canada's major exports, slipped from seven-month highs as signs of growing supplies helped to halt a rally driven by optimism that COVID-19 vaccines will revive fuel demand. crude CLc1 prices were down 1.6% at $44.99 a barrel, while the Canadian dollar CAD= was trading 0.1% lower at 1.3016 to the greenback, or 76.83 U.S. cents. It traded in a narrow range of 1.2990 to 1.3022.
On Wednesday, the loonie touched its strongest intraday level since Nov. 10 at 1.2982 as recent progress on vaccines, Joe Biden's U.S. presidential election win and hopes for further economic stimulus boosted investor sentiment. believe investors should expect this trend of an appreciating loonie to continue as we forecast an overall weaker period for the U.S. dollar, and stronger oil prices over the near-term," Philip Petursson, chief investment strategist and head of capital markets research at Manulife Investment Management, said in a research note.
The greenback .DXY has fallen more than 2% against a basket of major currencies since the start of the month.
U.S. markets were closed on Thursday for the Thanksgiving Day holiday.
Canadian payroll employment rose by 337,500, or 2.2%, in September, Statistics Canada said. Still, payroll employment has declined by 1.2 million since February due to the coronavirus crisis.
Bank of Canada Governor Tiff Macklem and Senior Deputy Governor Carolyn Wilkins were due to appear by videoconference before the House of Commons Standing Committee on Finance at 3:30 p.m. EST (2030 GMT).
Canadian government bond yields fell across much of a flatter curve. The 10-year yield CA10YT=RR was down 2.1 basis points at 0.692%.