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CANADA FX DEBT-Canadian dollar notches weekly gain as Fed impact fades

 (Adds strategist quotes and details throughout, updates prices)
    * Canadian dollar strengthens 0.2% against the greenback
    * For the week, the loonie gains 1.3%
    * Price of U.S. oil settles 1% higher at $74.05 a barrel
    * Canadian 10-year yield rises 4.4 basis points to 1.460%

    By Fergal Smith
    TORONTO, June 25 (Reuters) - The Canadian dollar edged
higher against its U.S. counterpart on Friday as oil prices
climbed and investors grew less worried about the Federal
Reserve's shift to more hawkish guidance, with the currency
adding to this week's gains.
    The loonie        was trading 0.2% higher at 1.2300 to the
greenback, or 81.30 U.S. cents, after trading in a range of
1.2271 to 1.2329.
    It was up 1.3% for the week, clawing back some its decline
from the previous week when the Federal Reserve surprised
markets by projecting it would begin interest rate hikes in 2023
rather than 2024.
    "The Fed was a turning point but it wasn't a complete game
changer," said Alvise Marino, FX strategist at Credit Suisse in
New York.
    "The fact that the Fed was able to introduce some
hawkishness in to the discourse but without causing a tantrum
(in the bond market) ... that's something that has allowed risky
assets to perform well," Marino said.
    The S&P 500 index hit a record high as weaker-than-expected
U.S. inflation data eased worries about a sudden tapering in
stimulus by the Fed.             
    Oil, one of Canada's major exports, notched a fifth
consecutive week of gains on expectations demand growth will
outstrip supply. U.S. crude oil futures        settled 1% higher
on Friday at $74.05 a barrel.             
    Canada projects COVID-19 infections will decline rapidly
over the next two months, but the more contagious Delta variant
risks causing a greater-than-expected resurgence of cases later
this year, public health officials said.             
    Canadian government bond yields rose across a steeper curve,
tracking the move in U.S. Treasuries. The 10-year            
was up 4.4 basis points at 1.460%, extending its rebound from
last Friday's 3-1/2-month low at 1.364%.

 (Reporting by Fergal Smith; editing by Jonathan Oatis and Nick
Zieminski)
  
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