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CANADA FX DEBT-Canadian dollar weakens as oil prices extend recent decline

       * Canadian dollar weakens 0.2% against the greenback
    * Loonie trades in a range of 1.2819 to 1.2876
    * Price of U.S. oil falls 1.1%
    * Canadian bond yields dip across curve

    TORONTO, Aug 4 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Thursday as oil prices fell
further and despite data showing that Canada's trade surplus
widened in June, helped by a record high for energy exports.
    Canada's trade surplus widened to C$5.1 billion ($3.97
billion)in June, beating analyst expectations, as exports rose
2%, driven mainly by energy but also gold exports, data from
Statistics Canada showed.
    Canada's employment report for July, due on Friday, could
offer further clues on the strength of the domestic economy.
    The price of oil       , one of Canada's major exports, was
down 1.1% at $89.71 a barrel, adding to the previous day's
decline when data showed a build in U.S. crude and gasoline
stocks. Investors worry that a demand slowdown will offset tight
supply.
    The Canadian dollar        was trading 0.2% lower at 1.2858
to the U.S. currency, or 77.77 U.S. cents, after trading in a
range of 1.2819 to 1.2876.
    Still, analysts expect the loonie to rally over the coming
year, betting the threat of recession will ease as the U.S.
Federal Reserve and the Bank of Canada likely wind down
rate-hike cycles in 2023, a Reuters poll showed.
    Canadian government bond yields edged lower across the
curve, with the 10-year             down about half a basis
point at 2.712%.
    Canada is due to auction C$3 billion of 10-year bonds on
Thursday, with the bidding deadline set for 12 p.m. ET (1600
GMT).
($1 = 1.2861 Canadian dollars)

 (Reporting by Fergal Smith
Editing by Tomasz Janowski)

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