(Adds strategist quote and details throughout; updates prices) * Canadian dollar weakens 0.1% against the greenback * Price of U.S. oil settles 3.4% lower * Canadian building permits rise 6.9% in June from May * Canadian 10-year yield rises 1.8 basis points to 1.135% By Fergal Smith TORONTO, Aug 4 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Wednesday along with a two-week low for oil prices, but the currency stuck to a narrow range ahead of key economic data through the rest of the week. The loonie was trading 0.1% lower at 1.2550 to the U.S. dollar, or 79.68 U.S. cents, adding to a string of modest declines since Friday. The currency traded in a range of 1.2515 to 1.2562. "There is a dearth of new factors to drive the CAD," strategists at Scotiabank, including Shaun Osborne, said in a note. "Snap (Canadian) election speculation continues to simmer ... we note that the CAD has generally taken elections in its stride in the past." Canadian Prime Minister Justin Trudeau is expected to call a September vote any day now, taking advantage of a recovering economy and ramped-up vaccine roll out to try and regain the parliamentary majority he lost in 2019. The price of oil , one of Canada"s major exports, settled 3.4% lower at $68.15 a barrel, pressured by a surprise build in U.S. stocks and worries that the spread of the coronavirus Delta variant will weigh on global energy demand. Canadian international merchandise trade data for June is due on Thursday and the July employment report is due on Friday, which could offer clues on the Bank of Canada policy outlook. Data on Wednesday showed that the value of Canadian building permits rose by 6.9% in June from May. Canadian government bond yields were higher across a flatter curve, tracking the move in U.S. Treasuries after Fed Vice Chair Richard Clarida said he could envision a taper in bond purchases later this year. The 10-year rose 1.8 basis points to 1.135%, after earlier touching its lowest since Feb. 16 at 1.078%. (Reporting by Fergal Smith; Editing by Sandra Maler, Kirsten Donovan) Our Standards: The Thomson Reuters Trust Principles.