CANADA FX DEBT-Canadian dollar pares weekly gain as greenback selling eases

    (Adds strategist quotes and details on activity; updates
prices)
    * Canadian dollar weakens 0.3% against the greenback
    * For the week, the loonie gains 0.6%
    * Flash estimate shows Canada's economy expanding 0.7% in
June
    * Canadian bond yields were mixed across the curve

    By Fergal Smith
    TORONTO, July 30 (Reuters) - The Canadian dollar fell
against its broadly stronger U.S. counterpart on Friday but held
on to much of this week's gains as oil prices rose and a
preliminary estimate showed Canada's economy rebounding in June.
    The loonie          was trading 0.3% lower at 1.2484 to the
greenback, or 80.10 U.S. cents, after trading in a range of
1.2423 to 1.2492.
    For the week, it was up 0.6% after also gaining in the
previous week. It was down 0.7% in July.
    The U.S. dollar        rose as upbeat economic data helped
reverse some of the losses from earlier this week when dovish
remarks by the Federal Reserve scuttled a month-long rally in
the U.S. currency.
    "You had pretty substantial dollar selling over the course
of the week," said Erik Nelson, a currency strategist at Wells
Fargo in New York.
    "I think the thought is, there's still risk of a hawkish
FOMC (Federal Open Market Committee)," Nelson added. "The market
doesn't want to get too short (of) dollars here."
    The Canadian economy most likely expanded by 0.7% in June as
businesses reopened after shutdowns imposed to help fight the
coronavirus pandemic, Statistics Canada said. The economy shrank
by 0.3% in May, matching a forecast by analysts.
    Canada's employment report for July is due next Friday which
could help guide expectations for the Bank of Canada policy
outlook.
    The price of oil       , one of Canada's major exports,
settled 0.5% higher at $73.95 a barrel, with demand growing
faster than supply and vaccinations expected to alleviate the
impact of a resurgence in COVID-19 infections across the globe.

    Canadian government bond yields were mixed across the curve,
with the market closing early ahead of the Civic Holiday on
Monday. The 10-year yields             was little changed at
1.203%.

 (Reporting by Fergal Smith; editing by Emelia Sithole-Matarise
and Sandra Maler)

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