CANADA FX DEBT-Canadian dollar retreats from 3-month high as oil prices fall

    * Canadian dollar dips 0.1% against the greenback
    * Price of U.S. oil decreases 1.6%
    * Canadian bond prices rise across the yield curve

    TORONTO, Oct 29 (Reuters) - The Canadian dollar edged lower
against its U.S. counterpart on Tuesday, pulling back from an
earlier three-month high as oil prices fell and ahead of
interest rate decisions this week by the Bank of Canada and the
U.S. Federal Reserve.    
    The price of oil, one of Canada's major exports, fell for a
second day, pressured by expectations of a rise in U.S. crude
inventories and doubts that OPEC and its allies will cut oil
output further in December. U.S. crude oil futures        were
down 1.6% at $54.93 a barrel.                 
    The Bank of Canada is likely to keep interest rates steady
at 1.75% on Wednesday in its first policy announcement since the
federal election, despite signs that investors seeking
higher-yielding currencies are shifting more money into Canadian
    The Fed is also due to make an interest rate announcement on
Wednesday. It is expected to lower the range for its policy rate
to below the Bank of Canada's equivalent rate for the first time
since December 2016.                     
    At 9:52 a.m. (1352 GMT), the Canadian dollar          was
trading 0.1% lower at 1.3067 to the greenback, or 76.53 U.S.
cents. The currency touched its strongest intraday level since
July 22 at 1.3043.
    The loonie has rallied more than 2% since early October,
buoyed by robust domestic jobs data and optimism about prospects
for a trade deal between the United States and China. The
currency has been the top-performing G10 currency this year, up
4.4% against the greenback.
    Canadian government bond prices were higher across the yield
curve, with the two-year            price up 2.1 Canadian cents
to yield 1.699% and the 10-year             rising 13 Canadian
cents to yield 1.605%.
    On Monday, the 10-year yield touched its highest since July
16 at 1.628%.

 (Reporting by Fergal Smith
Editing by Alistair Bell)