CANADA FX DEBT-Canadian dollar rises ahead of GDP data as oil prices climb

By Fergal Smith

TORONTO, Dec 22 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Monday as oil prices rose and investors turned their attention to monthly GDP data.

The loonie CAD= was trading 0.4% higher at 1.3740 per U.S. dollar, or 72.78 U.S. cents, after moving in a range of 1.3737 to 1.3804. Last Tuesday, the currency touched a near three-month high at 1.3728.

"The focus for data-watchers now shifts to Tuesday’s release of October GDP," analysts at Monex Europe said in a note. "However, we suspect that events in the Gulf of Mexico are likely to be more consequential for the loonie, with escalating tensions between the U.S. and Venezuela helping to push oil prices higher."

The price of oil CLc1, one of Canada's major exports, rose 2.3% to $57.82 a barrel after the U.S. Coast Guard began pursuing an oil tanker in international waters near Venezuela a day earlier, and Ukraine damaged two vessels and piers in Russia, raising the risk of oil supply disruptions.

The U.S. dollar .DXY fell against a basket of major currencies as Japanese officials signaled possible intervention in the yen.

Analysts expect Canadian GDP to decline 0.2% in October, adding to recent evidence of a sluggish economy in the face of trade uncertainty.

Canadian Prime Minister Mark Carney said former BlackRock executive Mark Wiseman would be the new ambassador to the United States, where he will focus on President Donald Trump's tariffs.

Canadian bond yields were mixed across a steeper curve. The 10-year CA10YT=RR was up 1.3 basis points at 3.482%, trading near the top of its range in recent months.

(Reporting by Fergal Smith; Editing by Alistair Bell)

((fergal.smith@thomsonreuters.com; +1 647 480 7446))