* Loonie touches its strongest since Nov. 27 at 1.3267 * Price of U.S. oil increases by 1.7% * Canadian productivity grows by 0.2% in the third quarter * Canadian bond prices fall across a steeper yield curve TORONTO, Dec 4 (Reuters) - The Canadian dollar strengthened to a one-week high against the greenback on Wednesday, as investors grew more optimistic about prospects for a U.S.-China trade deal and awaited an interest rate decision later in the morning by the Bank of Canada. Global shares rose, paring some declines from the day before, after a report said that the United States and China were moving closer to agreeing on the amount of tariffs that would be rolled back in phase one of a trade deal. Investors had worried that a deal could be delayed. The Bank of Canada has expressed concern about the impact of global trade uncertainty on Canada's commodity-linked economy. It is expected to leave its benchmark interest rate on hold at 1.75% when the policy decision is announced at 10 a.m. (1500 GMT). The price of oil, one of Canada's major exports, rose ahead of an expected extension to production curbs by OPEC and its allies, with further support from industry data showing a larger than forecast drop in U.S. crude stockpiles. U.S. crude oil futures were up 1.7% at $57.04 a barrel. At 9:04 a.m. (1404 GMT), the Canadian dollar was trading 0.2% higher at 1.3268 to the greenback, or 75.37 U.S. cents. The currency touched its strongest intraday level since Nov. 27 at 1.3267. Canadian labor productivity grew by 0.2% in the third quarter, as both hours worked and business output slowed, Statistics Canada said. Canadian government bond prices were lower across a steeper yield curve, with the two-year price down 3 Canadian cents to yield 1.571% and the benchmark 10-year falling 25 Canadian cents to yield 1.475%. (Reporting by Fergal Smith; Editing by Steve Orlofsky)
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