CANADA FX DEBT-C$ pares its weekly advance as global growth risks weigh

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    * Canadian dollar weakens 0.2% against the greenback
    * Canadian manufacturing sales rise by a record 20.7% in
June 
    * Price of U.S. oil decreases 0.5%
    * Canadian bond yields ease across a flatter curve

    By Fergal Smith
    TORONTO, Aug 14 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Friday as investor worries about
prospects for the global economy offset domestic data showing a
record gain for factory sales, but the loonie held on to most of
this week's rally.
    Global stocks          dipped as data out of China, the euro
zone and the United States put a lid on expectations for a
sustained global rebound, with traders already worried about a
delay in U.S. fiscal stimulus.             
    Canada runs a current account deficit and is a major
exporter of commodities, including oil, so the loonie       
tends to be sensitive to the global flow of trade and capital.
    The currency was trading 0.2% lower at 1.3248 to the
greenback, or 75.48 U.S. cents. The currency, which on Thursday
notched a 6-1/2-month high at 1.3188, traded in a range of
1.3206 to 1.3270. For the week, the loonie advanced 1%.
    Higher commodity prices and strong economic data
"underpinned Canadian dollar strength this week," said Michael
Goshko, corporate risk manager at Western Union Business
Solutions.
    Canadian manufacturing sales rose 20.7% in June as many
factories operated at a much higher capacity than in May.
            
    U.S. crude        prices settled 0.5% lower at $42.01 a
barrel but held close to their highest levels since March.
            
    "Stronger commodity prices for Canadian exports creates
greater external demand for the (Canadian) dollar," Goshko said.
    The United States will extend a ban on non-essential travel
at land borders with Canada and Mexico for another 30 days as
several states struggle to contain the coronavirus outbreak, a
top U.S. official confirmed.     
    Canadian government bond yields were lower across a flatter
curve, with the 10-year             down 2.4 basis points at
0.615%. On Thursday, it reached its highest intraday level in
more than two months at 0.642%.

 (Reporting by Fergal Smith
Editing by Nick Zieminski and Jonathan Oatis)
  

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