(New throughout, updates prices, market activity and comments) * Canadian dollar weakens 0.4% against the greenback * Canada adds 94,000 jobs in July * Price of U.S. oil settles 1.2% lower * Canadian bond yields rise across a steeper curve By Fergal Smith TORONTO, Aug 6 (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Friday as oil prices fell and investors were more impressed by jobs data in the United States than in Canada, with the loonie adding to this week"s decline. Canada added 94,000 jobs in July, far fewer than expected, though most of the gains were in full-time work, and the unemployment rate continued to tick down as the economy reopened. "On a domestic economic fundamental front this doesn"t really change too much" for the Canadian dollar," said Simon Harvey, FX market analyst for Monex Europe and Monex Canada. "It"s just a case of how it responds to broad U.S. dollar gyrations." The greenback rallied against a basket of major currencies as U.S. employers hired the most workers in nearly a year in July, giving the economy a powerful boost. The Canadian dollar was trading 0.4% lower at 1.2555 to the greenback, or 79.65 U.S. cents, after trading in a range of 1.2493 to 1.2580. For the week, it was down 0.7%. The price of oil , one of Canada"s major exports, settled 1.2% lower at $68.28 a barrel, closing out a week of losses on worries that restrictions to curb the spread of the Delta coronavirus variant will derail global economic gains. With some 60% of its population vaccinated against COVID-19, Canada tops a ranking of major countries fighting the pandemic, but that success is unlikely to fully shield its commodity-linked economy from the global spread of the variant. Separate data showed that Canadian economic activity expanded at the slowest pace in six months in July. The Ivey Purchasing Managers Index (PMI) fell to 56.4 from 71.9 in June. Canadian government bond yields were higher across a steeper curve, tracking the move in U.S. Treasuries. The 10-year rose 5.7 basis points to 1.233%. (Reporting by Fergal Smith; editing by Jonathan Oatis and David Gregorio) Our Standards: The Thomson Reuters Trust Principles.