CANADA FX DEBT-Canadian dollar edges lower after surprise drop in factory sales

    * Canadian dollar dips 0.1% against the greenback
    * Canadian factory sales decline 0.7% in October
    * Price of U.S. oil rises 0.5%
    * Canadian bond prices were little changed across the yield

    TORONTO, Dec 17 (Reuters) - The Canadian dollar weakened
slightly against the greenback on Tuesday, extending its
pullback from a near seven-week high the day before, as worries
about Brexit resurfaced and domestic data showed a surprise
decline in manufacturing shipments.        
    European stocks skidded off record highs on news that    
British Prime Minister Boris Johnson will use the prospect of a
Brexit cliff-edge at the end of 2020 to demand the European
Union gives him a comprehensive free trade deal in less than 11
    Canada runs a current account deficit and exports many
commodities, including oil, so its economy could be hurt by a
slowdown in the global flow of trade or capital.
    Canadian factory sales decreased by 0.7% in October from
September as the United Auto Workers strike in the United States
weighed on transportation equipment sales, Statistics Canada
said. Analysts had forecast no change.             
    Canada's inflation report for November is due on Wednesday,
which could help guide expectations for the Bank of Canada
interest rate outlook.
    At 9:02 a.m. (1402 GMT), the Canadian dollar          was
trading 0.1% lower at 1.3173 to the greenback, or 75.91 U.S.
cents. The currency traded in a range of 1.3155 to 1.3185.
    On Monday, the loonie notched its strongest intraday level
since Oct. 30 at 1.3115 after a trade deal between the United
States and China.
    Hopes that the U.S.-China trade deal will bolster oil demand
in 2020 and the prospect of lower U.S. crude supplies supported
the price of oil, one of Canada's major exports. U.S. crude oil
futures        were up 0.5% at $60.50 a barrel on Tuesday. 
    Canadian government bond prices were little changed across
the yield maturity curve, with the 10-year             rising 3
Canadian cents to yield 1.630%. On Friday, the 10-year yield
touched its highest intraday level in nearly seven months at

 (Reporting by Fergal Smith
Editing by Nick Zieminski)