CANADA FX DEBT-Canadian dollar gains but move limited amid uncertain trade deal prospects

By Fergal Smith

TORONTO, July 10 (Reuters) - The Canadian dollar edged higher against its U.S. counterpart on Thursday but the move was modest as the greenback notched broad-based gains and after new U.S. trade tariffs cast doubt about prospects of a trade deal this month between Canada and the United States.

The loonie CAD= was trading 0.1% higher at 1.3675 per U.S. dollar, or 73.13 U.S. cents, after trading in a range of 1.3664 to 1.3708. On Wednesday, the currency touched a 12-day low at 1.3710.

The number of Americans filing new applications for jobless benefits unexpectedly fell to a seven-week low last week, creating no urgency for the Federal Reserve to resume its interest rate cuts.

"There are some heavy rate cuts baked into the (U.S.) dollar curve that are suddenly looking more questionable," said Adam Button, chief currency analyst at ForexLive.

The U.S. dollar .DXY rose against a basket of major currencies, while the price of oil fell 2.6% to $66.60 a barrel as investors weighed the potential impact of U.S. tariffs on global economic growth. Oil is one of Canada's major exports.

On Wednesday, U.S. President Donald Trump announced a new 50% tariff on U.S. copper imports and a 50% duty on goods from Brazil, both to start on August 1.

Canada is a major supplier of copper to the United States. Its government is hoping to reach a trade deal with Washington by July 21.

"The market is anticipating a Canada-U.S. trade deal but that may be unrealistic," Button said. "Trump just is not in the deal making mood, at least on the kind of terms that Canada expects to achieve."

Canadian bond yields moved higher across the curve, tracking moves in U.S. Treasuries.

The 10-year CA10YT=RR rose 3.3 basis points to 3.414% but stopped short of the near six-month high that was touched during Wednesday's session at 3.462%.