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Loonie trades in a range of 1.3710 to 1.3756

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Price of U.S. oil settles 1.5% higher

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Canadian bond yields ease across the curve

By Fergal Smith

TORONTO, June 18 (Reuters) - The Canadian dollar was

little changed against its U.S. counterpart on Tuesday as

investors weighed softer-than-expected U.S. retail sales data

and awaited potential clues on prospects of additional interest

rate cuts from the Bank of Canada.

The loonie was trading nearly unchanged at 1.3720 to

the U.S. dollar, or 72.89 U.S. cents, after trading in a range

of 1.3710 to 1.3756. The currency has been in a holding pattern

since touching last Tuesday a near two-month low at 1.3791.

"Slightly weaker (U.S.) retail sales (on Tuesday) is just

making sure the U.S. dollar doesn't run away," said Rahim

Madhavji, president at KnightsbridgeFX.com.

The U.S. dollar edged lower against a basket of major

currencies after retail sales data indicated signs of exhaustion

among U.S. consumers, boosting the case for Federal Reserve rate

cuts later this year.

The BoC this month became the first G7 central bank to begin

cutting interest rates. Minutes from the June 5 policy decision

are due to be released on Wednesday.

"We are going to see in the minutes what the Bank of Canada

is thinking in terms of rate cuts and if they are even

considering the weakness in the Canadian dollar as part of their

rate cut decision," Madhavji said.

Data on Friday showed that speculators have raised their

bearish bets on the currency to a record high level.

The price of oil, one of Canada's major exports,

settled 1.5% higher at $81.57 a barrel, extending its recent

gains.

Canadian government bond yields moved lower across the

curve, tracking moves in U.S. Treasuries. The 10-year

was down 4.2 basis points at 3.274%.