CANADA FX DEBT-Loonie hits 6-week low as oil prices slide

    * Canadian dollar falls 0.3% against the greenback
    * Canada's July PMI rises to 50.2
    * U.S. oil prices decrease by 2.9%
    * Bond prices move lower across the yield curve

    By Levent Uslu
    TORONTO, Aug 1 (Reuters) - The Canadian dollar weakened to a
six-week low against its U.S. counterpart on Thursday as oil
prices fell and after hawkish comments by the Federal Reserve
the previous day boosted the greenback.    
    The U.S. dollar        gained against a basket of major
currencies as investors decided a lengthy U.S. easing cycle was
unlikely after the Fed cut interest rates on Wednesday for the
first time in more than a decade.             
    The price of oil, one of Canada's major exports, declined on
Thursday for the first time in six days, after the Fed was less
dovish than expected and as rising U.S. output helped keep the
market well supplied. U.S. crude oil futures        were down
2.9% at $56.88 a barrel.                 
    At 10:23 a.m. (1423 GMT), the Canadian dollar          was
trading 0.2% lower at 1.3219 to the greenback, or 75.65 U.S.
cents. The currency, which fell 0.8% against the U.S. dollar in
July, hit its lowest intraday level since June 20 at 1.3248.
    The downward move for the loonie came despite data showing
Canadian manufacturing activity expanded for the first time in
four months in July as a measure of output rebounded from a
three-and-a-half year low.             
    The IHS Markit Canada Manufacturing Purchasing Managers'
index (PMI) rose to a seasonally adjusted 50.2 last month from
49.2 in June.
    Canada's trade data for June is due on Friday, which could
help guide expectations for the Bank of Canada interest rate
outlook. The Bank of Canada left its benchmark interest rate
unchanged at 1.75% this month but highlighted the risks that
trade wars pose to the global economy                 
    Canadian government bond prices were higher across the yield
curve in sympathy with U.S. Treasuries. The two-year           
rose 2 Canadian cents to yield 1.536% and the 10-year
            was up 15 Canadian cents to yield 1.461%.
    On Wednesday, the 2-year yield reached its highest intraday
level since July 16 at 1.587%.

 (Reporting by Levent Uslu
Editing by Alistair Bell)