CANADA FX DEBT-Canadian dollar edges lower as investors await tangible trade deal progress?

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Canadian dollar falls 0.1% against the greenback

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Trades in a range of 1.3940 to 1.3962

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Trade deficit widens to C$6.32 billion in August

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Bond yields ease across a flatter curve

TORONTO, Oct 7 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Tuesday as Canada's trade deficit widened more than expected and investors assessed a White House meeting between U.S. President Donald Trump and Canadian Prime Minister Mark Carney.

The loonie was trading 0.1% lower at 1.3950 per U.S. dollar, or 74.21 U.S. cents, after moving in a range of 1.3940 to 1.3962. On Thursday, the currency touched a 4-1/2-month low at 1.3986.

Trump promised to treat Canada fairly in talks over punishing U.S. tariffs on Canadian goods, but was less committed about a continental trade deal that also includes Mexico.

"This is a good marker that they're talking but I thought there would be a little bit more today," said Amo Sahota, director at Klarity FX in San Francisco, adding that it's difficult for the loonie to rally without Canada achieving some concrete progress on reducing tariffs.

Canada's merchandise trade deficit widened in August to C$6.32 billion ($4.53 billion) as exports fell faster in both value and volume than the rise in imports on a monthly basis. Analysts had forecast the trade deficit at C$5.55 billion, compared to an upwardly revised C$3.82 billion deficit in the prior month.

The U.S. dollar rose against a basket of major currencies as concerns about more fiscal spending in Japan and political uncertainty in France weighed on the yen and the euro.

The price of oil, one of Canada's major exports, settled 0.1% higher at $61.73 a barrel. A smaller-than-expected increase to OPEC+ output in November offset signs of a potential supply glut.

Canadian government bond yields moved lower across a flatter curve, tracking moves in U.S. Treasuries. The 10-year was down 2.7 basis points at 3.187%. (Reporting by Fergal Smith; Editing by Alistair Bell)