* Canadian dollar rises 0.1 percent against the greenback
* Price of U.S. oil falls 0.5 percent
* Canadian housing starts rise more than expected in October
* Canadian bond prices make modest gains
By Fergal Smith
Nov 8 (Reuters) - The Canadian dollar edged higher against its broadly stronger U.S. counterpart on Thursday even as oil prices fell, but the currency traded in a narrow range ahead of a U.S. Federal Reserve interest rate decision.
At 10:34 a.m. (1534 GMT), the Canadian dollar CAD=D4 was trading 0.1 percent higher at C$1.3099 to the greenback, or 76.34 U.S. cents. The currency traded in a range of 1.3088 to 1.3125.
The Fed began its two-day policy meeting on Wednesday, facing a shifting political landscape but little in recent economic data to alter plans for an interest rate increase in December and more to come next year. U.S. dollar .DXY extended its recovery following a sigh of relief across markets after the U.S. midterm election results. price of oil, one of Canada's major exports, fell to an eight-month low as investors focused on global crude supply, which is increasing more quickly than many had expected. U.S. crude oil futures CLc1 were down 0.5 percent. housing starts rose in October to a seasonally adjusted annual rate of 205,925 units from September's upwardly revised 189,730 units. Economists had expected starts to rise to 200,000. separate data, new home prices in Canada were unchanged in September for the second month in a row, Statistics Canada said. government bond prices notched modest gains across a flatter yield curve. The 10-year CA10YT=RR rose 7 Canadian cents to yield 2.530 percent.