* Canadian dollar at C$1.2871, or 77.69 U.S. cents
* Oil prices rise 0.6 percent
* Bond prices lower across the yield curve
TORONTO, Dec 18 (Reuters) - The Canadian dollar was little
changed against its U.S. counterpart on Monday, with the loonie
trading in a narrow range ahead of domestic data later in the
week that could help guide expectations for the interest rate
At 9:21 a.m. ET (1421 GMT), the Canadian dollar was
nearly unchanged at C$1.2871 to the greenback, or 77.69 U.S.
cents. The currency traded in a range of C$1.2843 to C$1.2881.
The loonie dipped 0.1 percent last week after being
pressured on Friday by weaker-than-expected domestic
The currency also fluctuated last week on remarks by Bank of
Canada Governor Stephen Poloz.
Poloz worried about the potential to slip into a
"deflationary scenario" if interest rates are raised too fast to
deal with financial imbalances, in an interview with The Globe
and Mail that was published on Saturday.
Still, the central bank is leaving the door open to further
rate hikes in early 2018, making it clear that a number of
uncertainties that could derail the economy, such as North
America Free Trade Agreement (NAFTA) renegotiation, are a reason
for caution but not inaction.
NAFTA negotiators made some progress on less controversial
issues last week but left untouched the thorniest subjects of
autos, dispute settlement and an expiry clause to be tackled at
pivotal talks in January in Montreal.
Foreign investment in Canadian securities accelerated in
October, driven by a record purchase of bonds, data from
Statistics Canada showed.
Canada's inflation report for November and October retail
sales data are due on Thursday, while gross domestic product
data for October is due on Friday.
The price of oil, one of Canada's major exports, was
supported by a North Sea pipeline outage and a Nigerian oil
U.S. crude prices were up 0.6 percent at $57.65 a
The U.S. dollar dipped against a basket of major
currencies amid doubt whether a proposed U.S. tax overhaul
program would have a major impact on economic growth, after the
bill moved another step closer to ratification over the weekend.
Speculators have trimmed bullish bets on the Canadian dollar
for eight of the last nine weeks, data from the U.S. Commodity
Futures Trading Commission and Reuters calculations showed on
Canadian government bond prices were lower across the yield
curve, with the two-year down 3.5 Canadian cents to
yield 1.569 percent and the 10-year falling 12
Canadian cents to yield 1.85 percent.
(Reporting by Fergal Smith; Editing by Jonathan Oatis)
© 2017 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.