Canadian dollar weakens 0.2 against the greenback
Trades in a range of 1.3159 to 1.3236
Price of U.S. oil settles 1.7 higher
5year yield touches its highest since December 2007

TORONTO, July 27 Reuters The Canadian dollar weakened against its broadly stronger U.S. counterpart on Thursday but the move was limited as investors bet on similar interest rate paths for the Bank of Canada and the Federal Reserve.

The dollar rose against a basket of major currencies after betterthanexpected U.S. economic data and a dovish European Central Bank forced investors to reconsider the assumption that the Fed will pause interestrate hikes.

It39;s very hard for the CAD to get out from under the dollar39;s shadow at the moment, said Shaun Osborne, chief currency strategist at Scotiabank.

The feeling is perhaps that the Fed and the Bank of Canada are on similar flight paths as far as interest rates go. Unless or until there is some sort of major break in that thinking in the market we probably will stay relatively rangebound.

Money markets are pricing in a peak interest rate of about 5.25 for the Bank of Canada over the coming months, not much less than the 5.42 terminal rate that is priced in for the Fed.

Canadian GDP data for May, due on Friday, could guide expectations for additional BoC rate hikes.

The Canadian dollar was trading 0.2 lower at 1.3227 to the greenback, or 75.60 U.S. cents, after moving in a range of 1.3159 to 1.3236. Other G10 currencies, with the exception…