* Canadian dollar weakens 0.4% against the greenback
* Loonie trades in a range of 1.2063 to 1.2119
* Price of U.S. oil increases 0.6%
* Canadian bond yields rise across the curve
TORONTO, May 28 (Reuters) - The Canadian dollar lost ground
against its broadly stronger U.S. counterpart on Friday as data
showed U.S. consumer inflation heating up in April, with the
loonie on track to snap its longest streak of weekly gains since
2016.
The loonie was trading 0.4% lower at 1.2114 to the
greenback, or 82.55 U.S. cents, having traded in a range of
1.2063 to 1.2119. It was also down 0.4% for the week, after
having climbed for eight straight weeks.
U.S. consumer prices accelerated in the year to April, with
a measure of underlying inflation blowing past the Federal
Reserve's 2% target. It comes as some Fed officials acknowledge
that the time to talk about policy changes might be approaching.
The U.S. dollar strengthened against a basket of
major currencies, helped by month-end flows. The United States
has a public holiday on Monday.
The price of oil, one of Canada's major exports, rose as
strong U.S. economic data and expectations of a rebound in
global demand outweighed concerns about more supply from Iran
once sanctions are lifted. U.S. crude prices were up 0.6%
at $67.26 a barrel.
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 central bank 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.
Canadian government bond yields were higher across the
curve. The 10-year rose 1.2 basis points to 1.502%,
having rebounded from its lowest level since mid-April on
Wednesday at 1.444%.
(Reporting by Fergal Smith; Editing by Andrea Ricci)
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