CANADA FX DEBT-C$ dips but on track to climb 1.6% this week

    * Canadian dollar falls 0.1% against the greenback
    * Canadian retail sales rise 0.1% in April
    * Price of U.S. oil increases 0.1%
    * Canadian bond prices decline across the yield curve

    TORONTO, June 21 (Reuters) - The Canadian dollar edged lower
against its U.S. counterpart on Friday, trimming some of this
week's rally, as domestic data showed a smaller-than-expected
increase in retail sales in April.
    Canadian retail sales grew by 0.1% in April from March, led
by higher sales at gasoline stations, Statistics Canada said.
While the April increase was less than the 0.2% advance that
analysts had expected, March's already large gain was revised
higher to 1.3%.             
    At 9:07 a.m. (1307 GMT), the Canadian dollar          was
trading 0.1% lower at 1.3203 to the greenback, or 75.74 U.S.
cents. The currency, which on Thursday touched its strongest in
more than three months at 1.3151, traded in a range of 1.3163 to
    For the week, the loonie was on track to rise 1.6%, boosted
by the prospect of Federal Reserve interest rate cuts, data
showing a seven-month high for Canada's annual rate of inflation
and a rally in the price of oil, one of Canada's major exports.
    Oil added to this week's gains on fears of a U.S. military
attack on Iran that would disrupt flows from the Middle East,
the source of more than one-fifth of the world's crude. U.S.
crude oil futures        were up 0.1% at $57.14 a barrel.
    Canadian government bond prices were lower across the yield
curve in sympathy with U.S. Treasuries. The two-year           
fell 3 Canadian cents to yield 1.436% and the 10-year
            declined 13 Canadian cents to yield 1.480%.
    On Tuesday, the 10-year touched its lowest intraday yield in
two years at 1.383%.  

 (Reporting by Fergal Smith; Editing by Steve Orlofsky)