* Canadian dollar rises 0.1% against the greenback
* Canadian retail sales rise fall 0.1% in September
* Loonie is on track to decline 0.4% for the week
* Canadian bond prices edge lower across the yield curve
TORONTO, Nov 22 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Friday, paring some of this week's decline, as investors grew more optimistic on a U.S.-China trade deal and after domestic data showed growth in underlying retail sales.
Canadian retail sales were down 0.1% in September from August, matching estimates, data from Statistics Canada showed. Excluding motor vehicle and parts dealers and gasoline stations, sales rose 0.7%. stocks .WORLD were lifted by China's renewed offer to work out a trade pact with Washington. is a major export of commodities, including oil, so its economy could benefit from an improved outlook for global trade.
Oil prices were boosted by expectations major producers would extend production cuts. U.S. crude oil futures CLc1 rose 0.2% to $58.69 a barrel. 9:17 a.m. (1417 GMT), the Canadian dollar CAD=D4 was trading 0.1% higher at 1.3268 to the greenback, or 75.37 U.S. cents. The currency traded in a range of 1.3255 to 1.3290.
The gain for the loonie comes after Bank of Canada Governor Stephen Poloz on Thursday doused expectations for an interest rate cut as soon as next month, noting that the services sector and housing "have been going pretty well." housing market has turned the corner and prices will increase modestly faster over the coming few years, a Reuters poll of economists and property market analysts predicted, but with no return to boom times any time soon. of a rate cut in December have fallen to less than 10% from about 25% earlier this week, data from the overnight index swaps market showed. BOCWATCH
Still, the loonie was on track to fall 0.4% for the week.
A strike at Canada's biggest railroad Canadian National Railway Co CNR.TO , entered its fourth day on Friday amid ongoing talks. Economists say that a prolonged strike could crimp Canada's economic growth. government bond prices edged lower across the yield curve, with the two-year CA2YT=RR down 1.5 Canadian cents to yield 1.572% and the 10-year CA10YT=RR falling 2 Canadian cents to yield 1.480%.