TORONTO, Dec 4 (Reuters) - The Canadian dollar touched a five-week high against its U.S. counterpart on Thursday before giving back its gains, as oil prices rose and ahead of domestic jobs that could guide expectations for an upcoming Bank of Canada policy decision.
The loonie was trading nearly unchanged at 1.3945 per U.S. dollar, or 71.71 U.S. cents, after touching its strongest intraday level since October 29 at 1.39255.
Higher oil prices and equity market gains have helped support the loonie, said Nick Rees, head of macro research at Monex Europe Ltd.
Canada's main stock index rose to a record intraday high as stronger-than-expected bank earnings boosted financial shares.
Energy stocks also rose as the price of oil climbed 1.5% to $59.84 a barrel. Oil is one of Canada's major exports.
"The (Canadian) macro data is starting to paint a much more positive picture than it has done for some time," Rees said, pointing to recent stronger-than-expected GDP data and the potential for increased fiscal spending to boost the economy.
Canada's jobs report for November is due on Friday. Analysts have forecast that the economy shed 5,000 jobs and that the unemployment rate edged up to 7% from 6.9% in October.
Still, that would follow two months of large job gains, while the Bank of Canada has signaled that its easing campaign is on hold after the benchmark interest rate was lowered to a three-year low of 2.25% in October. Investors expect no change in rates at a policy decision next Wednesday. 0#CADIRPR, opens new tab
Canadian bond yields rose across the curve, tracking moves in U.S. Treasuri
