* Canadian dollar rises 0.1% against the greenback
* Loonie trades in a range of 1.3291 to 1.3331
* Price of U.S. oil increases 1.5%
* Canada's 10-year yield touches a one-month low at 1.226%
TORONTO, Oct 7 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Monday as oil prices rose, but the currency's gains were modest ahead of trade talks this week between the United States and China.
Stocks edged up globally as broadly positive U.S. jobs data from last week quelled some fears about an economic slowdown, but nervousness over U.S.-China trade talks persisted after a report that Chinese officials are signaling they are increasingly reluctant to agree to a broad trade deal pursued by U.S. President Donald Trump. exports many commodities, including oil, so its economy could be hurt by prolonged global trade uncertainty.
U.S. crude oil futures CLc1 rallied 1.5% to $53.61 a barrel, supported by challenges to supply facing major exporters. 9:11 a.m. (1311 GMT), the Canadian dollar CAD=D4 was trading 0.1% higher at 1.3293 to the greenback, or 75.23 U.S. cents. The currency, which weakened 0.4% last week, traded in a range of 1.3291 to 1.3331.
The modest gain for the loonie follows data on Friday showing that Canada's trade deficit shrank by almost a third in August to C$955 million as exports broke a two-month slump, rising by 1.8%. Canadian dollar will gain ground against its U.S. counterpart over the coming year, supported by strengthening of the domestic economy and a narrower gap between Canadian and U.S. interest rates, a Reuters poll predicted. have raised their bullish bets on the Canadian dollar, data from the U.S. Commodity Futures Trading Commission and Reuters calculations showed on Friday. As of Oct. 1, net long positions had increased to 6,327 contracts from 4,592 in the prior week. government bond prices were lower across the yield curve in sympathy with U.S. Treasuries. The two-year CA2YT=RR fell 4 Canadian cents to yield 1.435% and the 10-year CA10YT=RR was down 29 Canadian cents to yield 1.265%.
Earlier in the day, the 10-year yield touched its lowest since Sept. 5 at 1.226%.