(Adds dealer quotes and details throughout; updates prices)
* Canadian dollar weakens 0.1% against the greenback
* Loonie trades in a range of 1.2063 to 1.2120
* Price of U.S. oil settles 0.8% lower
* Canadian 10-year yield was little changed at 1.489%
By Fergal Smith
TORONTO, May 28 (Reuters) - The Canadian dollar edged lower
against its U.S. counterpart on Friday as oil prices fell and
data showed U.S. consumer inflation heating up in April, with
the loonie ending its longest streak of weekly gains since 2016.
The loonie was trading 0.1% lower at 1.2078 to the
greenback, or 82.80 U.S. cents, having traded in a range of
1.2063 to 1.2120. It was also down 0.1% for the week, after
having climbed for eight straight weeks.
"We've had a really strong run in the Canadian dollar in the
last one or two months," said Rahim Madhavji, president at
KnightsbridgeFX.com. "It's hard to see what the next catalyst
for the loonie is going to be going forward."
Speculators have cut their bullish bets on the Canadian
dollar for the first time in six weeks, data from the U.S.
Commodity Futures Trading Commission showed. As of May 25, net
long positions had dipped to 44,811 contracts from 46,112 in the
prior week.
U.S. consumer prices accelerated in the year to April, with
a measure of underlying inflation blowing past the Federal
Reserve's 2% target.
The data is "potentially going to put pressure on the Fed to
act sooner rather than later" to tighten policy, Madhavji said.
Canadian GDP data for the first quarter is due on Tuesday,
with economists expecting an annualized increase of 7%. The data
could help guide expectations for the Bank of Canada policy
outlook.
The BoC is likely to cut its bond-buying program again this
year, possibly as soon as July, as provinces ease curbs to
contain the coronavirus pandemic and inflation pressures build,
analysts said.
The price of oil , one of Canada's major exports,
settled 0.8% lower at $66.32 a barrel, giving back some of this
week's rally, while Canada's 10-year yield was
nearly unchanged at 1.489%.
(Reporting by Fergal Smith; Editing by Andrea Ricci and Will
Dunham)
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