(Adds strategist quotes and details throughout; updates prices) * Canadian dollar weakens 0.2% against the greenback * Loonie touches a five-week high intraday at 1.3095 * Price of U.S. oil increases nearly 2% * Canadian bond yields ease across a flatter curve By Fergal Smith TORONTO, Oct 13 (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Tuesday after a high-profile COVID-19 vaccine trial was paused, crimping risk appetite, with the currency pulling back from an earlier five-week high. The loonie was trading 0.2% lower at 1.3143 to the greenback, or 76.09 U.S. cents. The currency touched its strongest intraday level since Sept. 8 at 1.3095. "I don't think there is anything CAD specific about the move," said Alvise Marino, a foreign exchange strategist at Credit Suisse in New York. "It is in line with the broader price action in risky assets." The Dow and the S&P 500 fell after a four-day winning streak, pressured by news that Johnson & Johnson had paused its COVID-19 vaccine candidate clinical trials because of an unexplained illness in a study participant. Canada runs a current account deficit and is a major exporter of commodities, including oil, so the currency tends to be sensitive to the signal equity markets send about the outlook for the global economy. Oil was supported by robust economic data from China, but gains were capped by forecasts for a slow recovery in global oil demand as coronavirus cases rise. U.S. crude oil futures settled nearly 2% higher at $40.20 a barrel. Despite Tuesday's setback, the loonie was up 1.3% since the start of October. Financial markets moving "to price out U.S. election uncertainty" has been supportive this month of cyclical currencies, such as the loonie, Marino said. "Today, we are seeing a pause in the trend." Canadian government bond yields eased across a flatter curve in sympathy with U.S. Treasuries on Tuesday, as Canada's market reopened following the Thanksgiving Day holiday. The 10-year fell 4.3 basis points to 0.586%, pulling back from its highest since Sept. 1 at 0.646% earlier in the session. (Reporting by Fergal Smith; Editing by Nick Zieminski and Peter Cooney)
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