TORONTO, June 4 (Reuters) - The Canadian dollar steadied near an earlier eight-week low against its U.S. counterpart on Thursday as the price of oil fell and ahead of domestic jobs data that could help guide expectations for an upcoming Bank of Canada interest rate decision.
The loonie was trading nearly unchanged at 1.3895 per U.S. dollar, or 71.97 U.S. cents, after touching its weakest intraday level since April 7 at 1.3925.
"Weak domestic fundamentals and lingering trade uncertainty mean that the CAD is not master of its own destiny at the moment," Shaun Osborne and Eric Theoret, strategists at Scotiabank, said in a note. "External developments will remain a strong influence on price action."
The price of oil , one of Canada's major exports, was trading 3.8% lower at $92.41 a barrel on investor hopes for an end to the U.S.-Israeli war with Iran that could lead to a reopening of the Strait of Hormuz, while the U.S. dollar gave back some recent gains against a basket of major currencies.
Canada's dollar will strengthen over the coming year so long as the domestic economy recovers and progress is made in the review of a continental trade pact, a Reuters poll showed.
Domestic employment data, due on Friday, is expected to show the economy adding 10,000 jobs last month and the unemployment rate holding steady at 6.9%, its highest level since October.
Investors expect the Bank of Canada to leave its benchmark interest rate on hold at 2.25% for a fifth straight policy decision next Wednesday, swap market data showed.
Canadian bond yields moved lower across the curve, tracking moves in U.S. Treasuries. The 10-year was down 1.5 basis points at 3.420%.
Reporting by Fergal Smith in Toronto; Editing by Matthew Lewis
