(Adds details throughout and updates prices) * Canadian dollar gains 0.7% against the greenback * Loonie touches its strongest since Sept. 1 at 1.3024 * Price of U.S. oil settles 0.9% lower * Canadian bond yields trade mixed across a steeper curve By Fergal Smith TORONTO, Nov 5 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Thursday as the Federal Reserve kept its loose monetary policy intact, pressuring the greenback, and investors weighed the policy implications of a potentially divided U.S. Congress. The loonie was trading 0.7% higher at 1.3051 to the greenback, or 76.62 U.S. cents. The currency touched its strongest intraday level since Sept. 1 at 1.3024. The safe-haven U.S. dollar slumped against a basket of major currencies, as global stocks rallied and the Fed pledged again to do whatever it can in coming months to sustain a U.S. economic recovery threatened by a spreading coronavirus pandemic and facing uncertainty over a still undecided presidential election. Regardless of the outcome of the White House race, a divided Congress could lead to policy gridlock in Washington, raising doubts over prospects for a large coronavirus relief package. A large economic package would bolster the outlook for Canada"s commodity-linked currency, FX strategists said in a Reuters poll. The price of oil , one of Canada"s major exports, settled 0.9% lower at $38.79 a barrel. Canada"s jobs report for October is due on Friday, which could offer some clues about the strength of Canada"s economic recovery. Canadian government bond yields were mixed across a steeper curve, with the 10-year up half a basis point at 0.617%. (Reporting by Fergal Smith; Editing by Steve Orlofsky and Chizu