(Adds details on activity and updates prices)
* Canadian dollar strengthens 0.1% against the greenback
* Loonie trades in a range of 1.2056 to 1.2106.
* Price of U.S. oil settles 0.6% lower
* Canadian 10-year yield rises 1.8 basis points to 1.474%
By Fergal Smith
TORONTO, June 7 (Reuters) - The Canadian dollar edged higher
against the greenback on Monday but kept to its recent trading
range, as Ontario announced earlier than planned easing of
COVID-19 curbs and investors awaited a Bank of Canada interest
rate decision this week.
The loonie was trading 0.1% higher at 1.2064 to the
greenback, or 82.89 U.S. cents, having traded in a range of
1.2056 to 1.2106. Last Tuesday, it touched its strongest level
in six years at 1.2007.
Ontario, Canada's most populous province, said it will
loosen COVID-19 restrictions starting June 11, three days ahead
of schedule, as infection rates continue to drift lower.
The Bank of Canada is widely expected to leave its benchmark
interest rate on hold at a record low of 0.25% on Wednesday. In
April, the central bank signaled it could start hiking rates in
late 2022 and tapered its bond purchases.
After lengthy domestic lockdowns and a weaker-than-expected
rebound in the U.S. labor market, the Bank of Canada could dial
back some of the optimism it showed at the last policy
announcement in April," Benjamin Reitzes, Canadian rates and
macro strategist at BMO Capital Markets, said in a note.
"A more cautious tone from the BoC" is likely, Reitzes said.
Data on Friday showed that the U.S. economy added less jobs
than expected in May, weighing on the U.S. dollar .
The price of oil , one of Canada's major exports,
touched its highest level since October 2018 at $70 a barrel
before settling 0.6% lower at $69.23. Oil has been supported by
expectations of improved demand and OPEC producers keeping
supply curbs in place.
Canadian government bond yields rose across much of a
steeper curve, with the 10-year up 1.8 basis points
at 1.474%. On Friday, it touched its lowest since May 26 at
1.456%.
(Reporting by Fergal Smith; editing by Jonathan Oatis and Grant
McCool)
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