CANADA FX DEBT-Canadian dollar steadies near 13-day low as trade deficit narrows

*

Loonie touches its weakest since February 6 at 1.3714

*

Trade deficit narrows to C$1.31 billion in December

*

Price of oil settles 1.9% higher

*

Bond yields were little changed across the curve

By Fergal ?Smith

TORONTO, Feb 19 (Reuters) - The Canadian dollar steadied after ?six straight days of declines against its U.S. counterpart on Thursday as oil prices rose ?and data showed that Canada's trade deficit narrowed in December.

The loonie was ?trading nearly unchanged at 1.37 per U.S. dollar, or ?72.99 U.S. cents, ?after earlier touching its weakest level since February 6 at 1.3714.

Canada's trade deficit narrowed to ?C$1.31 billion ($957 million) in December from a ?revised C$2.59 billion in November, as a jump in exports of unwrought gold helped lift total exports by 2.6%.

For ?2025, exports edged down 0.2%, weighed ?by ?reduced exports to the United States after it began a trade war.

"Canada has thus far escaped the worst of the trade ?blow," Karl Schamotta, chief market strategist at Corpay, said in a note. "But ?officials on both sides of the border are preparing for acrimonious negotiations in the months ahead - and we think (currency) hedgers should be doing the same."

The United States-Mexico-Canada Agreement, which has shielded much of Canada's ?exports from ?U.S. tariffs, is set for review by a July ?1 deadline.

The price of oil, one of Canada's major exports, settled 1.9% ?higher at $66.43 a barrel as traders worried about escalating tensions between the United States and Iran, which have stepped up military activity in the oil-producing Middle East.

The safe-haven U.S. dollar added to recent gains against a basket of major currencies after U.S. data indicated the economy was stable, giving the Federal Reserve leeway ?to hold interest rates in check.

Canadian bond yields were little changed across the curve. The 10-year was down less than half a basis point ?at 3.226%, after touching on Tuesday ?a near seven-week low at 3.204%. (Reporting by Fergal ?Smith; Editing by Alison Williams)