TORONTO, Feb 8 (Reuters) - The Canadian dollar was little changed against its broadly stronger U.S. counterpart on Thursday as oil prices rose and investors awaited domestic employment data that could offer clues on the Bank of Canada's policy outlook.
The loonie was trading nearly unchanged at 1.3457 to the greenback, or 74.31 U.S. cents, after touching its strongest intraday level since Friday at 1.3450.
"The Canadian dollar is largely bouncing around in a narrow range," said Rahim Madhavji, president at KnightsbridgeFX.com.
"All eyes in Canada are on the Canadian employment report that's coming up tomorrow ... If the jobs data is to the upside, we could see the loonie gain quite a bit of strength off of that."
The Canadian employment report, due on Friday, is expected to show the economy adding 15,000 jobs in January.
On Wednesday, minutes from the BoC's Jan. 24 policy meeting showed the central bank fretting that an increase in wages amid zero productivity growth could add to inflationary pressures.
Signs of recovery in Canada's housing market could be another risk to the inflation outlook, with realtors saying that pent-up demand, chronic shortage of homes, a spike in rents and hopes of an interest rate cut may fuel a rally in the sector.
The price of oil, one of Canada's major exports, settled 3.2% higher at $76.22 a barrel on concerns of a broadening conflict in the Middle East after Israel rejected a ceasefire offer from Hamas.
Canadian government bond yields rose across the curve, tracking moves in U.S. Treasuries. The 10-year was up 9.2 basis points at 3.570%, its highest level since Dec. 1.
Reporting by Fergal Smith, editing by Deepa Babington
