* Canadian dollar rises 0.3 percent against the greenback
* Price of U.S. oil rises 2.3 percent
* Canadian manufacturing sales rise 0.2 percent in September
* Canadian bond prices move higher across the yield curve
TORONTO, Nov 16 (Reuters) - The Canadian dollar strengthened to its highest in more than one week against its broadly weaker U.S. counterpart on Friday, as oil prices rose domestic data showed that factory sales edged higher in September.
At 9:15 a.m. (1415 GMT), the Canadian dollar CAD=D4 was trading 0.3 percent higher at 1.3140 to the greenback, or 76.10 U.S. cents.
The currency touched its strongest level since Nov. 8 at 1.3137. For the week, it was on track to rise 0.5 percent.
The price of oil, one of Canada's major exports, rose on expectations that OPEC and its allies would agree to cut output next month but prices were still down on the week on concerns that the global market was oversupplied. O/R
U.S. crude CLc1 prices were up 2.3 percent at $57.74 a barrel.
Canadian factory sales rose 0.2 percent in September from August on higher shipments of autos as production ramped up after a series of assembly plant shutdowns, Statistics Canada said. Analysts in a Reuters poll had forecast a 0.3 percent gain. separate domestic data, net foreign investment in Canadian securities jumped to C$7.70 billion in September from a year-low C$2.63 billion in August on higher purchases of money market paper. for the loonie came as mounting uncertainty over Britain's draft Brexit deal with the European Union cast a shadow over foreign exchange markets, while comments by Fed policymakers about slowing global growth weighed on the greenback. government bond prices were higher across the yield curve in sympathy with U.S. Treasuries. The two-year CA2YT=RR rose 2 Canadian cents to yield 2.229 percent and the 10-year CA10YT=RR climbed 17 Canadian cents to yield 2.369 percent.
The gap between Canada's 2-year yield and its U.S. equivalent narrowed by 3 basis points to a spread of 59.3 basis points in favor of the U.S. bond.