* Price of U.S. oil settles 2.6% higher
* Loonie touches its weakest since July 7 at 1.3377
* 10-year yield climbs to highest since October
TORONTO, Aug 3 (Reuters) - The Canadian dollar was little changed against its U.S. counterpart on Thursday, with the currency recovering from a near four-week low as commodity prices rallied and investors awaited domestic and U.S. jobs data.
The loonie was trading nearly unchanged at 1.3350 to the greenback, or 74.91 U.S. cents, after touching its weakest level since July 7 at 1.3377.
"It's bounced because we are seeing nice bounces for oil and copper today," said Erik Bregar, director, FX & precious metals risk management at Silver Gold Bull.
Canada is a major producer of commodities, including metals and oil. U.S. crude futures settled 2.6% higher at $81.55 a barrel as Saudi Arabia and Russia were taking steps to keep supplies tight into September and possibly beyond.
"But overall the Canadian (dollar) still feels pretty weak here vis-à-vis other G7 currencies," Bregar said. "There has been a momentum trade behind the weakness ever since dollar-CAD broke back above 1.3250 and I think tomorrow morning's twin job reports are going to be another catalyst for price movement."
The Canadian and U.S. employment reports for July are due for release on Friday which could help guide expectations for additional interest rate hikes by the Bank of Canada and the Federal Reserve. Analysts expect a jobs gain of 21,100 for Canada.
Analysts have raised their bullish forecasts on the Canadian dollar as central banks globally, including the Fed, move closer to concluding interest rate hiking campaigns, a Reuters poll showed.
Canadian government bond yields were higher across a steeper curve, tracking moves in U.S. Treasuries. The 10-year touched its highest level since Oct. 21 at 3.734% before dipping to 3.704%, up 7.7 basis points on the day. (Reporting by Fergal Smith; Editing by Alison Williams)
