TORONTO, June 2 (Reuters) - The Canadian dollar steadied near a multi-week low against its U.S. counterpart on Tuesday as recent downbeat domestic data and the prospect of uncertain trade talks between Canada and the United States weighed on the currency.
The loonie was trading nearly unchanged at 1.3838 per U.S. dollar, or 72.26 U.S. cents, after moving in a range of 1.3816 to 1.3854. On Thursday, the currency touched a six-week low at 1.3869.
"The CAD is trading on the back foot as softer oil momentum collides with a resilient greenback and a widening growth gap," said Tony Valente, senior FX dealer at AscendantFX.
"While the U.S. economy keeps surprising to the upside, Canada is coming off a marginal technical recession at the start of the year, which the Bank of Canada appears ill-equipped to address."
Data on Friday showed that Canadian gross domestic product declined at an annualized rate of 0.1% in the first quarter after a downwardly revised contraction of 1% in the previous quarter, as trade uncertainty weighed on business investment.
Investors expect the BoC to leave its benchmark interest rate on hold at 2.25% for a fifth straight meeting next week, swap market data showed.
The United States-Mexico-Canada Agreement — known as CUSMA in Canada — has shielded much of Canada's exports from U.S. tariffs. It is set for review by July 1.
Canada sent a letter to the United States and Mexico outlining its recommendations to renew the trade pact for 16 years while seeking parallel talks on sectoral tariffs ahead of a meeting between Canadian and U.S. trade negotiators later in the day.
"Layer in the July CUSMA review and the ever-present threat of fresh U.S. tariffs, and the loonie lacks a compelling catalyst," Valente said.
The U.S. price of oil , one of Canada's major exports, rose 1.5% to $93.55 a barrel but remained toward the lower end of its range in recent weeks.
Canada's 10-year yield was trading nearly unchanged at 3.423%, after touching its lowest level since April 8 at 3.394%.
Reporting by Fergal Smith
