CANADA FX DEBT-C$ dips vs stronger greenback as Italy adds to trade uncertainty

    * Canadian dollar at C$1.3004, or 76.90 U.S. cents
    * Price of U.S. oil rises 0.7 percent
    * Bond prices higher across a flatter yield curve

    TORONTO, June 14 (Reuters) - The Canadian dollar edged lower
against its U.S. counterpart on Thursday as the greenback
broadly climbed and after Italy added to Canada's uncertain
trade outlook, saying it will not ratify the European Union's
free trade accord with the country. 
    The free trade agreement with Canada does not ensure
sufficient protection for Italy's specialty foods, new
Agriculture Minister Gian Marco Centinaio said in a newspaper
    Canada is also contending with new U.S. tariffs on steel and
aluminum imports as well as slow-moving talks to modernize the
North American Free Trade Agreement.
    The U.S. dollar        rose against a basket of major
currencies after a signal by the European Central Bank that it
would keep interest rates at record lows through the summer of
2019 weighed on the euro.             
    Gains for the greenback came as U.S. data showing the
strongest rise in retail sales in six months supported
expectations that the Federal Reserve would raise interest rates
    At 9:13 a.m. EST (1313 GMT), the Canadian dollar          
traded 0.1 percent lower at C$1.3004 to the greenback, or 76.90
U.S. cents. The currency traded in a range of C$1.2950 to
    On Wednesday, the loonie touched its weakest in more than
one week at C$1.3052.
    The ratio of debt to disposable income, a measure closely
watched by policymakers, slipped in the first quarter to a
two-year low of 168.0 percent from 169.7 percent in the fourth
quarter as disposable income grew, Statistics Canada said.
    The price of oil, one of Canada's major exports, rose
despite evidence of rising U.S. output and uncertainty over the
outlook for supply before a meeting next week of the world's
largest exporters.             
    U.S. crude        prices were up 0.7 percent at $67.11 a
    Canadian government bond prices were higher across a flatter
yield curve in sympathy with U.S. Treasuries and German Bunds.
The two-year            rose 2 Canadian cents to yield 1.927
percent and the 10-year             climbed 24 Canadian cents to
yield 2.290 percent.

 (Reporting by Fergal Smith
Editing by Jeffrey Benkoe)