CANADA FX DEBT-Loonie extends January rally, notches near 3-month high

    * Canadian dollar rises 0.1 percent against the greenback
    * Loonie touches its strongest since Nov. 8 at 1.3109
    * Price of U.S. oil rises 
    * Canadian bond prices fall across the yield curve

    TORONTO, Feb 1 (Reuters) - The Canadian dollar strengthened
to its highest in nearly three months against its U.S.
counterpart on Friday as oil prices rose, while the greenback
broadly declined despite U.S. data showing that employers hired
the most workers in 11 months.
    U.S. job growth surged in January, pointing to underlying
strength in the economy despite a darkening outlook that has
left the Federal Reserve cautious about further interest rate
hikes this year.             
    The price of oil, one of Canada's major exports, was
supported by producer cuts and U.S. sanctions on Venezuelan
exports that have helped to tighten supply. U.S. crude oil
futures        were up 0.50 percent at $54.06 a barrel.
    At 9:15 a.m. (1415 GMT), the Canadian dollar          was
trading 0.1 percent higher at 1.3111 to the greenback, or 76.27
U.S. cents. The currency, which climbed 3.9 percent in January,
touched its strongest level intraday since Nov. 8 at 1.3109.
    Gains for the loonie came after U.S. President Donald Trump
said on Thursday he will meet with Chinese President Xi Jinping
soon to try to seal a comprehensive trade deal.             
    Data on Friday showed shrinking factory activity in China
could increase the urgency for a deal.             
    Canada is running a current account deficit as well as being
a major commodities producer, so its economy could benefit from
a pickup in the global flow of trade.    
    Canadian government bond prices were lower across the yield
curve in sympathy with U.S. Treasuries. The two-year           
fell 4 Canadian cents to yield 1.795 percent and the 10-year
            declined 26 Canadian cents to yield 1.909 percent.
    On Thursday, the 10-year yield touched its lowest intraday
in nearly four weeks at 1.865 percent.

 (Reporting by Fergal Smith
Editing by Phil Berlowitz)