* Canadian dollar falls 0.1% against the greenback
* Trades in a range of 1.3800 to 1.3821 per U.S. dollar
* Price of oil declines 2.6%
* Bond yields rise across the curve
By Fergal Smith
TORONTO, May 26 (Reuters) - The Canadian dollar edged
lower against its U.S. counterpart on Tuesday as investors
weighed comments by a senior Bank of Canada policymaker and
looked ahead to quarterly GDP data at the end of the week.
The loonie was trading 0.1% lower at 1.3805 per U.S.
dollar, or 72.44 U.S. cents, after trading in a range of 1.3800
to 1.3821. On Friday, the currency touched a near six-week low
at 1.3824.
Economists expect first-quarter GDP data, due on Friday, to
show the economy growing at an annualized rate of 1.5%.
"The Canadian dollar remains stubbornly range-bound ahead of
Friday's first-quarter gross domestic product report, which is
expected to show the economy staging a relatively modest
recovery after contracting at the end of last year," Karl
Schamotta, chief market strategist at Corpay, said in a note.
"Paired with evidence of soft labour markets and weak
demand-led inflation, this growth backdrop should give the Bank
of Canada room to await clearer evidence of a shift in economic
direction before moving again."
Structural changes in the labor market were making the Bank
of Canada's job more complicated, Deputy Governor Nicolas
Vincent said, adding that if the central bank reacted wrongly,
inflationary pressures could rise.
Investors expect the BoC to leave its benchmark interest
rate on hold at 2.25% on June 10, swap market data showed.
The U.S. dollar rose against a basket of major currencies
and the price of oil clawed back some earlier declines to
trade 2.6% lower at $94.05 a barrel, as U.S. military strikes in
Iran added to uncertainty over whether a deal would be reached
soon to end the war.
Oil is one of Canada's major exports.
Canadian bond yields moved higher across the curve. The
10-year was up 1.7 basis points at 3.484% after
touching during Monday's session its lowest level since April 22
at 3.448%.