* Canadian dollar rises 0.2% against the greenback
* Canadian manufacturing sales increase by 0.8% in August
* Canada adds 28,200 jobs in September
* Canadian bond prices fall across the yield curve
TORONTO, Oct 17 (Reuters) - The Canadian dollar strengthened to a five-week high against its U.S. counterpart on Thursday as investors welcomed an eleventh-hour Brexit deal and domestic data showed a stronger-than-expected gain for factory sales in August.
Canadian manufacturing sales increased by 0.8% in August from July on higher motor vehicle sales, as well as fabricated metal products, Statistics Canada said. Analysts had forecast a 0.6% increase. data from payroll services provider ADP (NASDAQ:ADP) showed that Canada added 28,200 jobs in September, building on a blockbuster increase of 109,900 in an upwardly revised reading for the previous month. encouraging data could support expectations for the Bank of Canada to leave its benchmark interest rate unchanged at 1.75% when the central bank announces its next rate decision on Oct. 30.
Global stocks .WORLD rose and the U.S. dollar .DXY lost ground after Britain struck a preliminary last-minute deal with the European Union helping to ease some geopolitical jitters. runs a current account deficit and is a major exporter of commodities, including oil, so its economy could benefit from a pick-up in the global flow of capital or trade.
U.S. crude oil futures CLc1 were down 0.5% at $53.09 a barrel as industry data showed a larger-than-expected build-up in U.S. inventories. 9:09 a.m. (1309 GMT), the Canadian dollar CAD=D4 was trading 0.2% higher at 1.3163 to the greenback, or 75.97 U.S. cents. The currency touched its strongest intraday level since Sept. 11 at 1.3157.
The gain for the loonie came ahead of a federal election on Monday. Opinion polls show that Prime Minister Justin Trudeau's Liberal Party, in power since 2015, is locked in a tie with the opposition Conservatives and will lose its majority in the House of Commons. government bond prices were lower across the yield curve in sympathy with U.S. Treasuries. The two-year CA2YT=RR fell 1.8 Canadian cents to yield 1.654% and the 10-year CA10YT=RR was down 11 Canadian cents to yield 1.560%.
The 10-year yield touched its highest intraday since July 16 at 1.608%.