Canadian dollar gains 0.2% against the greenback Touches strongest level since last Friday at 1.2799 Canadian GDP likely rises 0.3% in November Canadian government bond yields rise across a steeper curve TORONTO, Dec 23 (Reuters) - The Canadian dollar strengthened on Thursday to its highest level in nearly one week against the greenback, bolstered by upbeat domestic GDP data and optimism that the Omicron coronavirus variant would not derail global economic recovery. The loonie was trading 0.2% higher at 1.2810 to the greenback, or 78.06 U.S. cents, after touching its strongest level since last Friday at 1.2799. The currency has rebounded from a one-year low on Monday at 1.2963. "Activity has been quiet today ahead of the holidays but additional gains in equities and commodities such as crude oil have helped to underpin positive risk sentiment," said George Davis, chief technical strategist at RBC Capital Markets. Canada is a major exporter of oil, so the loonie tends to be sensitive to movement in risk appetite. Wall Street and oil prices rose after early data suggested the Omicron variant was less severe than feared. read more U.S. crude oil futures were up 1.1% at $73.58 a barrel. Domestic economic data added to support for the loonie. Canadian gross domestic product rose 0.8% in October from September, in line with analyst estimates, while a preliminary estimate for November showed growth of 0.3%. read more "Today"s figures are encouraging, and show how the economy can indeed rebound quickly, when it is opened," Doug Porter, chief economist at BMO Capital Markets, said in a note. The Bank of Canada has projected that the economy will grow at an annualized rate of 4% in the fourth quarter. It is expected to begin hiking interest rates in the coming months despite the threat the variant poses to growth. read more Canadian bond yields rose across a steeper curve, tracking the move in U.S. Treasuries. The 10-year was trading 3 basis points higher at 1.454% after touching on Monday its lowest level in nearly three months at 1.282%.