CANADA FX DEBT-Loonie falls as Canadian data shows economic momentum easing

    (Adds details on activity; updates prices)
    * Canadian dollar weakens 0.3% against the greenback
    * Trades in a range of 1.2616 to 1.2698
    * Canadian wholesale trade falls 2.1% in July
    * Canadian bond yields rise across the curve

    By Fergal Smith
    TORONTO, Sept 16 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Thursday as the greenback
notched broad-based gains and investors weighed domestic data
showing some weakening in activity.
    The loonie        was trading 0.3% lower at 1.2675 to the
greenback, or 78.90 U.S. cents, after moving in a range of
1.2616 to 1.2698.
    Canadian wholesale trade fell by 2.1% in July from June, the
biggest decline since April last year, and housing starts were
down 3.9% in August compared with the previous month.

    "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 U.S. dollar        climbed to a near 3-week high against
a basket of currencies after data showing U.S. retail sales
unexpectedly increased in August.
    The data could ease some concerns about a sharp slowdown in
the U.S. economy, ahead of a Federal Reserve policy meeting next
week.
    U.S. crude        prices were unchanged at $72.61 a barrel
as the threat to U.S. Gulf production from Hurricane Nicholas
receded. Oil is one of Canada's major exports.
    Canadian government bond yields were higher across the
curve. The 10-year             touched its highest since Aug. 12
at 1.272% before pulling back to 1.231%, up 1.2 basis points on
the day.

 (Reporting by Fergal Smith;
Editing by Bernadette Baum)

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