(Adds strategist quotes and details throughout; updates prices) * Canadian dollar falls 0.1% against the greenback * Price of U.S. oil settles 1.1% lower * Canada"s Ivey PMI falls to 52.7 in November * Canadian bond yields ease across much of a flatter curve By Fergal Smith TORONTO, Dec 7 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Monday, with the currency tracking broader shifts in the greenback ahead of a Bank of Canada policy decision later in the week that is unlikely to produce any change in interest rates. The loonie was trading 0.1% lower at 1.2797 to the greenback, or 78.14 U.S. cents, having retreated from a 2-1/2-year high on Friday at 1.2768. The modest pullback was mostly driven by movement in the U.S. dollar, said Erik Nelson, a currency strategist at Wells Fargo. The U.S. dollar rose against a basket of major currencies, while U.S. crude oil futures settled 1.1% lower at $45.76 a barrel. Crude was pressured by surging coronavirus cases and heightened tensions between the United States and China. The Bank of Canada is due to make an interest rate decision on Wednesday. In October, the central bank said it expected interest rates to remain at current record lows until 2023 and reduced its bond-buying program to C$4 billion per week from C$5 billion, while tweaking purchases toward longer-term bonds. A Reuters poll showed that the central bank would not increase its asset-purchase program anytime soon. "After the BoC"s policy tweaks in October, this week’s meeting is likely to be a snoozer," Nelson said. Canadian economic activity increased for the sixth straight month in November but the pace of expansion surprisingly slowed, Ivey Purchasing Managers Index (PMI) data showed on Monday. The seasonally adjusted index fell to 52.7 from 54.5 in October. Canadian government bond yields eased across much of a flatter curve, with the 10-year down 3.2 basis points at 0.766%. Earlier in the session, it touched its highest since Nov. 13 at 0.810%. (Reporting by Fergal Smith; Editing by Chizu Nomiyama and Peter Cooney)