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Loonie touches strongest since July 4 at 1.3576

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Price of oil settles 0.1% lower

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Canadian bond yields rise across the curve

By Fergal Smith

TORONTO, July 23 (Reuters) - The Canadian dollar was

barely changed against its U.S. counterpart on Wednesday, with

the commodity-linked currency holding near an earlier three-week

high as investors weighed prospects of additional trade deals

that could improve the global economic outlook.

The loonie was trading nearly unchanged at 1.3604 per

U.S. dollar, or 73.51 U.S. cents, after earlier touching its

strongest intraday level since July 4 at 1.3576.

"There has been very little CAD related news so it's moving

along with the USD Index and general risk sentiment," said Amo

Sahota, director at Klarity FX in San Francisco. "Traders will

want to hear on trade deals with other major economies."

Wall Street's main indexes moved higher after a Financial

Times report that the EU and the United States were closing in

on a trade deal, similar to the agreement U.S. President Donald

Trump struck with Japan.

The U.S. dollar edged lower for a fourth straight day

against a basket of major currencies and the price of oil

, one of Canada's major exports, settled 0.1% lower at

$65.25 a barrel.

Canadian retail sales data for May, due on Thursday, could

offer clues on the hit from tariffs to the domestic economy.

Economists forecast a monthly decline of 1.1%.

Still, investors expect the Bank of Canada to keep its

benchmark interest rate on hold at 2.75% at a policy decision

next Wednesday, after recent data showed underlying inflation

remaining well above target.

"The potential of a BoC rate cut next week is slim so CAD

traders are feeling somewhat passive on domestic drivers at the

moment," Sahota said.

Canadian bond yields rose across the curve, tracking moves

in U.S. Treasuries. The 10-year was up 5.4 basis

points at 3.557%.