(Adds investor quotes and details throughout; updates prices) * Canadian dollar rises 0.1% against the greenback * Canada posts a trade surplus of C$1.4 billion in January * Price of U.S. oil settles 3.5% higher * Canada"s 10-year yield touches a 13-month high at 1.544% By Fergal Smith TORONTO, March 5 (Reuters) - The Canadian dollar edged higher against its broadly stronger U.S. counterpart on Friday, clawing back its earlier decline as oil prices climbed and data showed Canada"s first trade surplus since May 2019. Canada posted a surprise trade surplus of C$1.4 billion in January, mostly on a sharp increase in exports, Statistics Canada said. Analysts had predicted a C$1.4 billion deficit. The trade data was "one more reason for the Bank of Canada to take their foot off the accommodation," said Earl Davis, head of fixed income & money markets at BMO Global Asset Management. The BoC has since last March slashed interest rates to near zero and begun a large-scale bond buying program, or quantitative easing, for the first time. The central bank"s next policy move will be to taper its quantitative easing purchases following a solid economic rebound and sustained growth later this year, a Reuters Poll showed. It is due to make an interest rate decision on Wednesday. The Canadian dollar was trading 0.1% higher at 1.2658 to the greenback, or 79.00 U.S. cents, having traded in a range of 1.2645 to 1.2737. For the week, it was up 0.6%. "There"s a lot of tailwinds" for the loonie, including higher commodity prices, Davis said. The price of oil , one of Canada"s major exports, settled 3.5% higher at $66.09 a barrel after OPEC and its allies agreed not to increase supply in April, while the U.S. dollar rose to its highest since November against a basket of major currencies. Support of the greenback, data showed the United States adding more jobs than expected in February. Canadian government bond yields were mixed across a flatter curve. The 10-year touched its highest since January last year at 1.544% before dipping to 1.501%, down nearly one basis point on the day. (Reporting by Fergal Smith; editing by Barbara Lewis and Marguerita Choy)