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CANADA FX DEBT-C$ extends pullback from 7-month high as oil prices fall

    * Canadian dollar falls 0.2% against the greenback
    * U.S. oil prices decrease 1.7% 
    * Canadian bond yields ease across a flatter curve

    TORONTO, Aug 20 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Thursday as oil prices fell and
rising U.S. jobless claims weighed on investor sentiment, with
the loonie extending its pullback from a seven-month high the
day before.
    The loonie        was trading 0.2% lower at 1.3238 to the
greenback, or 75.54 U.S. cents. The currency, which on Wednesday
touched its strongest intraday in nearly seven months at 1.3133,
traded in a range of 1.3198 to 1.3241.
    Wall Street's main equity indexes were set to open lower
after weekly jobless claims rose unexpectedly back above the 1
million mark last week, lending weight to the Federal Reserve's
view of a difficult road to economic recovery. Canada sends
about 75% of its exports to the United States, including oil.
            
    U.S. crude        prices were down 1.7% at $42.22 a barrel
on demand concerns, while the U.S. dollar        added to its
rally from the previous day when less dovish than expected
minutes from last month's Fed policy meeting prompted bears to
buy into the heavily shorted currency.                 
    The Teranet-National Bank Composite House Price Index, which
tracks data collected from public land registries to measure
changes for repeat sales of single-family homes, showed prices
were up 5.5% on an annual basis. That was the second consecutive
month of year-over-year deceleration.             
    Canada added 1,149,800 jobs in July, breaking a four-month
streak of declines, led by increased hiring in the trade,
transportation and utilities sectors, a report from payroll
services provider ADP showed.             
    Canadian government bond yields were lower across a flatter
curve in sympathy with U.S. Treasuries. The 10-year            
was down 3.5 basis points at 0.547%.
    Canada's retail sales report for June is due on Friday.

 (Reporting by Fergal Smith; Editing by Bernadette Baum)
  
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