CANADA FX DEBT-Canadian dollar dips as data shows economic momentum easing

       * Canadian dollar weakens 0.1% against the greenback
    * Canadian wholesale trade falls 2.1% in July
    * Price of U.S. oil decreases 0.6%
    * Canadian bond yields rise across a steeper curve

    By Fergal Smith
    TORONTO, Sept 16 (Reuters) - The Canadian dollar edged lower
against its U.S. counterpart on Thursday as oil prices fell and
investors weighed domestic data showing some weakening in
activity.
    Canadian wholesale trade fell by 2.1% in July from June, the
biggest decline since April last year, Statistics Canada said.
The decline was driven by lower sales in the building materials
and supplies subsector as lumber prices fell sharply.

    Separate data, from the Canadian Mortgage and Housing
Corporation, showed housing starts fell 3.9% in August compared
with the previous month as both multiple urban starts and single
urban starts declined.
    "Momentum (in housing starts) has been moderating after
unprecedented strength earlier in the year," Shelly Kaushik, an
economist at BMO Capital Markets, said in a note.
    Foreign investors are growing more worried that Canada's
federal election on Monday could result in a deadlock that
hampers Ottawa's response to the COVID-19 pandemic and further
slows the economic recovery from the crisis.
    The price of oil, one of Canada's major exports, fell from a
multi-week high a day earlier as the threat to U.S. Gulf
production from Hurricane Nicholas receded.
    U.S. crude        prices were down 0.6% at $72.2 a barrel,
while the Canadian dollar        was trading 0.1% lower at
1.2651 to the greenback, or 79.05 U.S. cents. The currency
traded in a range of 1.2616 to 1.2654.
    Canadian government bond yields were higher across a steeper
curve, tracking the move in U.S. Treasuries after data showed an
unexpected increase for U.S. retail sales in August.

    The 10-year             rose 4.9 basis points to 1.268%, its
highest level since Aug. 26.

 (Reporting by Fergal Smith;
Editing by Bernadette Baum)

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