(Adds strategist quotes and details throughout; updates prices) * Canadian dollar strengthens 0.6% against the greenback * Touches its strongest since July 30 at 1.2447 * Canada adds 157,000 jobs in September * Canadian 10-year yield hits a near 7-month high at 1.634% By Fergal Smith TORONTO, Oct 8 (Reuters) - The Canadian dollar on Friday strengthened to its highest level in more than two months against the greenback as strong domestic jobs data supported the Bank of Canada"s forecast for the economy to pick up. The loonie was trading 0.6% higher at 1.2470 to the greenback, or 80.19 U.S. cents, after moving through its 200-day moving average at 1.2512 and touching its strongest level since July 30 at 1.2447. The move was "a pretty firm affirmation of investor sentiment toward the Canadian dollar and the Canadian economy," said Michael Goshko, corporate risk manager at Western Union Business Solutions. "We are now experiencing the surge in growth that the Bank of Canada had forecast many months ago." The Canadian economy posted a monster gain of 157,000 jobs in September, pushing employment back to its pre-pandemic levels. The Bank of Canada has projected that the economy will rebound in the second half of the year after a surprise contraction in the second quarter. It is due to make an interest rate decision on Oct. 27 when it could further cut its bond purchase program. The data "likely seals the deal for another taper from the Bank of Canada later this month," said Royce Mendes, a senior economist at CIBC Capital Markets. For the week, the loonie was up 1.4%. It was the third straight week of gains, helped by surging oil prices. U.S. crude oil futures settled 1.3% higher at $79.35 a barrel as an energy crunch showed no signs of easing, while the U.S. dollar was little moved by a disappointing U.S. employment report. Canadian government bond yields were higher across the curve. The 10-year touched its highest since March 18 at 1.634% before dipping to 1.628%, up 6 basis points on the day. (Reporting by Fergal Smith; Editing by Ken Ferris and Alistair Bell) Our Standards: The Thomson Reuters Trust Principles.