(Added quotes and dealer details throughout; updates prices) * Canadian dollar is trading in a range of 1.2322 to 1.2390 * Canadian retail sales increase 2.1% in August compared to July * US oil price stands 1.5% higher * Canadian 10-year yield decreases 4.2 basis points to 1.659% By Fergal Smith TORONTO, October 22 (Reuters) – The The Canadian dollar barely moved against its US counterpart on Friday, giving up some earlier gains as US equity markets fell and investors looked to an interest rate announcement from the Bank of Canada next week. The loonie was trading almost unchanged at 1.2368 for the greenback, or 80.85 cents US, after trading in a range of 1.2322 to 1.2390. The currency touched its highest level in nearly four months at 1.2287 on Thursday, but ended little change for the week after some profit taking. “You’ve seen the stock market weaken and I think the Canadian dollar is following stocks closely,” said Rahim Madhavji, president of KnightsbridgeFX.com. “With the weekend approaching and the Bank of Canada next week, now is a good time to lock in profits.” The S&P 500 and the Nasdaq closed lower after comments about the reduction in stimulus from Federal Reserve Chairman Jerome Powell scared markets to record highs. Canadian retail sales increased 2.1% in August from July, although global supply shortages held back auto sales. But preliminary estimates for September were less encouraging, showing retail sales slipping 1.9% and manufacturing sales down 3.2%. “The flash estimates for September are not good news for the last month of the quarter,” Royce Mendes, senior economist at CIBC Capital Markets, said in a note. Still, the Bank of Canada is expected to largely end the relaunch of its bond buying program next Wednesday, while money markets anticipate four interest rate hikes next year. The price of oil, one of Canada’s top exports, rose 1.5% to $ 83.76 a barrel as concerns about tight supply fueled bullish sentiment. Canadian government bond yields were mixed on a flatter curve. The 10-year rate hit its highest level since January 2020 at 1.713% before sagging to 1.659%, down 4.2 basis points on the day. (Report by Fergal Smith Editing by Paul Simao and Sandra Maler)


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