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CANADA FX DEBT-C$ pulls back from 3-week high as risk appetite cools

       * Canadian dollar weakens 0.2% against the greenback
    * Touches its strongest since May 5 at 1.2762
    * Flash estimate shows factory sales up 1.6% in April
    * Canadian bond yields rise across steeper curve

    TORONTO, May 24 (Reuters) - The Canadian dollar edged lower
against its U.S. counterpart on Tuesday as equity markets
globally gave back some of the previous day's rally and a
preliminary domestic estimate showed manufacturing sales
climbing in April.
    Shares slid worldwide as fears about weak earnings and
slowing economic growth punctured the recent mini-rally.

    Canada is a major producer of commodities, including oil, so
the loonie tends to be sensitive to prospects for the global
economy.
    Oil dipped as concerns over a possible recession and China's
COVID-19 curbs balanced tight global supply and an expected
pick-up in demand during the U.S. summer driving season.

    U.S. crude        prices eased 0.1% to $110.19 a barrel,
while the Canadian dollar        was trading 0.2% lower at
1.2790 to the greenback, or 78.19 U.S. cents. It touched its
strongest intraday level since May 5 at 1.2762.
    Canadian factory sales rose 1.6% in April from March,
largely driven by higher sales of petroleum and coal products,
Statistics Canada said in a flash estimate.
    A separate flash estimate for the same month showed that
wholesale trade rose 0.2%.
    Canadian government bond yields were higher across a steeper
curve as the market reopened following Monday's holiday for
Victoria Day. The 10-year             rose 3.8 basis points to
2.870%.

 (Reporting by Fergal Smith; Editing by Kirsten Donovan)

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