(Adds details on activity, updates prices) * Canadian dollar strengthens 0.6% against the greenback * Canada"s economy grows 0.7% in January * Loonie gains 1.4% for the quarter * Canadian bond yields rise across a steeper curve By Fergal Smith TORONTO, March 31 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Wednesday and advanced for a fourth straight quarter, as data showed faster-than-expected growth in the domestic economy and the Bank of Canada expressed concern about housing prices. The Canadian dollar was up 0.6% at 1.2560 to the greenback, or 79.62 U.S. cents, having recovered from its lowest intraday level in nearly three weeks on Tuesday at 1.2646. For the month, the loonie rose 1.4%, while it was also up 1.4% for the quarter, the strongest performance among G10 currencies. The Canadian economy grew 0.7% in January, surpassing estimates for 0.5%, largely on increases in wholesale trade and manufacturing, Statistics Canada said. A flash estimate pointed to a 0.5% gain in February. "The growth outlook for this year continues to brighten amid sizable fiscal stimulus, an ultra-accommodative central bank, and good news on the vaccines," said Ryan Brecht, a senior economist at Action Economics. Pfizer Inc has agreed to accelerate the delivery of its COVID-19 vaccine to Canada, and some doses of the Johnson & Johnson inoculation are due to arrive at the end of April, Canadian officials said on Tuesday. Bank of Canada Governor Tiff Macklem, speaking in a newspaper interview, said he saw worrying signs that household indebtedness was worsening as housing prices continue to soar. Technology shares led the S&P 500 to a record high, with investors awaiting details on U.S. President Joe Biden"s massive infrastructure plan. Canada sends about 75% of its exports to the United States, including oil. U.S. crude prices settled 2.3% lower at $59.16 a barrel on concerns about the market"s recovery after OPEC and its allies lowered their 2021 demand growth forecast. Canadian government bond yields rose across a steeper curve in tandem with U.S. Treasuries. The 10-year was up 3 basis points at 1.564%. (Reporting by Fergal Smith; Editing by Bernadette Baum and Peter Cooney)