CANADA FX DEBT-Canadian dollar edges higher ahead of domestic GDP data

By Fergal Smith

TORONTO, Feb 25 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Wednesday but the move was limited ahead of expected trade negotiations between Canada and the United States as well as domestic gross domestic product data due this week.

The loonie CAD= was trading 0.2% higher at 1.3677 per U.S. dollar, or 73.12 U.S. cents, after moving in a range of 1.3675 to 1.3706. It touched on Tuesday a near three-week low at 1.3724.

"Friday’s fourth‑quarter GDP print remains the key domestic event," strategists at Monex Europe said in a note. "We see underlying growth momentum holding up, reinforcing our expectation that the BoC will stay on hold for now."

Economists expect a flat reading for fourth-quarter GDP, due on Friday. That would match the Bank of Canada's projection in January when it left the benchmark interest rate on hold at 2.25%.

U.S. and Canadian trade officials spoke on Wednesday and plan to meet in coming weeks, U.S. Trade Representative Jamieson Greer said, adding that the Trump administration was open to their ideas on how to reach an agreement.

U.S.-Canada tensions have grown in recent months over trade and other issues. The United States-Mexico-Canada Agreement, a continental trade pact that has shielded much of Canada's exports from U.S. tariffs, is set for review by a July 1 deadline.

The price of oil CLc1 one of Canada's major exports, fell 0.1% to $65.57 a barrel as a much larger-than-expected U.S. crude stock build offset a potential military conflict between the U.S. and Iran.

Canadian bond yields were mixed across the curve. The 10-year CA10YT=RR was little changed at 3.188%, holding near a multi-month low it touched on Tuesday at 3.173%.