C$ dips as retail sales data falls short of estimates

* Canadian dollar weakens 0.1% against the greenback

* Canadian retail sales rise 0.7% in November

* Price of U.S. oil falls 0.9%

* Canadian bond yields ease across the curve

TORONTO, Jan 21 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Friday as uncertainty about the pace of expected Federal Reserve interest rate hikes weighed on investor sentiment and domestic data showed retail sales growing less than expected in November.

The loonie CAD= was trading 0.1% lower at 1.2520 to the greenback, or 79.87 U.S. cents, after trading in a range of 1.2499 to 1.2537.

For the week, it was on track to gain 0.3% as expectations built for a Bank of Canada Link interest rate hike next week.

Canadian retail sales rose 0.7% in November, on higher sales at gasoline stations and building materials and gardening equipment and supplies dealers, Statistics Canada said.

That missed analyst estimates for a 1.2% increase, while prelinary data showed sales falling 2.1% in December.

Stock markets globally .WORLD dropped as investors awaited the Federal Reserve's FOMC meeting next week for details on how it intends to tackle high inflation and weaker-than-expected earnings from companies that soared in the pandemic hit investor confidence.

The price of oil, one of Canada's major exports, was pressured by an unexpected rise in U.S. crude and fuel inventories while investors took profits after the global benchmarks touched seven-year highs this week.

U.S. crude CLc1 prices were down 0.9% at $84.81 a barrel.

Canadian government bond yields were lower across the curve, tracking the move in U.S. Treasuries. The 10-year CA10YT=RR eased 4 basis points to 1.793%, pulling back from its highest level in nearly three years on Wednesday at 1.905%.
Reporting by Fergal Smith; editing by Barbara Lewis

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