* Canadian dollar at C$1.3562 or 73.74 U.S. cents * Bond prices mixed across the maturity curve By Saqib Iqbal Ahmed July 20 (Reuters) - The Canadian dollar edged higher against its U.S. counterpart on Monday, but its gains were capped as oil prices came under pressure, unnerved by the prospect of rising coronavirus cases halting a recovery in fuel demand. The Canadian dollar was at C$1.3562 to the greenback, or 73.74 U.S. cents, slightly stronger than Friday's close of C$1.3578, or 73.65 U.S. cents. The loonie has been in a narrow range against the greenback for the last seven weeks bouncing between C$1.3717 and C$1.3313. "Spot is stuck in very familiar ranges again this morning," Shaun Osborne Chief FX strategist at Scotia Bank said in a note. "We think USDCAD is liable to remain range bound for now but the CAD is likely to continue to lose some ground on the crosses," he said. The loonie was about 0.2% lower against the euro. The price of oil, one of Canada's major exports, fell on Monday as coronavirus cases increased in many countries across the globe, but investors remained cautiously optimistic about ongoing talks over a European Union recovery fund to revive economies affected by the pandemic. "The CAD’s correlation with risk is weakening but remains elevated while its correlation with crude is picking up, suggesting perhaps that the market’s focus is switching to more domestically-relevant drivers," Osborne said. Canadian government bond prices were mixed across the maturity curve, with the two-year yield at 0.277%, up from 0.272% late on Friday, while the benchmark Canadian 10-year yield fell to 0.504% from Friday's 0.525%. (Reporting by Saqib Iqbal Ahmed; editing by Jonathan Oatis)
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