TORONTO, Aug 15 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Thursday as the greenback notched broad-based gains and domestic data showed a decline in wholesale trade, with the currency retreating from a near four-week high it notched the day before.
The loonie was trading 0.1% lower at 1.3725 to the U.S. dollar, or 72.86 U.S. cents, after touching on Wednesday its strongest intraday level since July 18 at 1.3686.
"A weak two-month performance from Canadian wholesale sales might be taking some strength from the loonie," said Michael Goshko, senior market analyst at Convera Canada ULC.
Canadian wholesale trade fell by 0.6% month-over-month in June, after declining by 1.2% in May, on lower sales in the motor vehicle and motor vehicle parts and accessories subsector.
Separate data showed Canadian home sales falling 0.7% in July from June.
The Bank of Canada has said that too much slack in the economy could slow inflation more than it would like.
The U.S. dollar rose against a basket of major currencies after U.S. economic data eased fears of a recession and dampened expectations for aggressive interest rate cuts from the Federal Reserve.
The prospect of a U.S. soft landing could also help Canada's economy, Goshko said.
Canada sends about 75% of its exports to the United States, including oil. U.S. crude oil futures settled 1.5% higher at $78.16 a barrel.
Canadian government bond yields moved higher across the curve, tracking moves in U.S. Treasuries. The 10-year was up 5 basis points at 3.073%, after four straight days of declines.
Reporting by Fergal Smith; editing by Jonathan Oatis
