TORONTO: The Canadian dollar lost ground against its broadly stronger US counterpart on Friday as data showed US consumer inflation heating up in April, with the loonie on track to snap its longest streak of weekly gains since 2016.

The loonie was trading 0.4% lower at 1.2114 to the greenback, or 82.55 US cents, having traded in a range of 1.2063 to 1.2119. It was also down 0.4% for the week, after having climbed for eight straight weeks.

US consumer prices accelerated in the year to April, with a measure of underlying inflation blowing past the Federal Reserve's 2% target. It comes as some Fed officials acknowledge that the time to talk about policy changes might be approaching.

The US dollar strengthened against a basket of major currencies, helped by month-end flows. The United States has a public holiday on Monday.

The price of oil, one of Canada's major exports, rose as strong US economic data and expectations of a rebound in global demand outweighed concerns about more supply from Iran once sanctions are lifted. US crude prices were up 0.6% at $67.26 a barrel.

Canadian GDP data for the first quarter is due on Tuesday, with economists expecting an annualized increase of 7%. The data could help guide expectations for the Bank of Canada policy outlook.

The central bank is likely to cut its bond-buying program again this year, possibly as soon as July, as provinces ease curbs to contain the coronavirus pandemic and inflation pressures build, analysts said.

Canadian government bond yields were higher across the curve. The 10-year rose 1.2 basis points to 1.502%, having rebounded from its lowest level since mid-April on Wednesday at 1.444%.