* 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 curve 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 months. 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 1.695%. (Reporting by Fergal Smith Editing by Nick Zieminski)
Our Standards: The Thomson Reuters Trust Principles.