TORONTO, April 25 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Friday and was on track for a slight weekly decline, as investors weighed prospects of a cooling in U.S.-China trade tensions and awaited the outcome of Canada's general election.
The loonie was trading 0.1% lower at 1.3860 per U.S. dollar, or 72.15 U.S. cents, after moving in a range of 1.3847 to 1.3892. For the week, the currency was also down 0.1%, after seven straight weekly gains.
The U.S. dollar (.DXY), opens new tab rose against a basket of major currencies after China granted some tariff exemptions for U.S. imports.
"For the coming week, trade talks will remain the focal point for global markets," Shaun Osborne and Eric Theoret, strategists at Scotiabank, said in a note.
"The federal election in Canada may have some impact on the CAD outlook as investors assess how the new government will handle trade talks."
Canada stands to elect a more business-friendly government than has been the case in recent years but its trade-dependent economy could be in line for an increased level of deficit spending, analysts and investors said before Monday's vote.
Prime Minister Mark Carney's ruling Liberal Party remains ahead in the latest polls but the gap with the main opposition Conservative Party, led by Pierre Poilievre, is tightening.
Canadian retail sales fell by 0.4% in February from January to C$69.33 billion ($49.95 billion) on lower sales at motor vehicle and parts dealers but a preliminary estimate showed sales rebounding 0.7% in March.
Separate preliminary data showed factory sales falling 1.9% last month.
The price of oil, one of Canada's major exports, rose 0.1% to $62.88 a barrel but was headed for a weekly decline.
Canadian bond yields were mixed across a flatter curve, with the 10-year down 2.7 basis points at 3.167%.
Reporting by Fergal Smith; Editing by Alistair Bell
