CANADA FX DEBT-Canadian dollar retreats from 7-week high as oil prices fall

    * Canadian dollar falls 0.2% against the greenback
    * Loonie touches its strongest level since June 10 at 1.3331
    * Price of U.S. oil declines 0.8%
    * Canada's 10-year yield eases 3.4 basis points to 0.489%

    TORONTO, July 28 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Tuesday as oil and gold prices
fell, with the loonie pulling back from its highest level in
nearly seven weeks reached earlier in the session.
     The price of oil, one of Canada's major exports, was lower
as demand worries due to a rise in coronavirus cases worldwide
undermined support coming from hopes for additional U.S.
economic stimulus measures. U.S. crude        prices were down
0.8% at $41.25 a barrel.             
    Gold notched a record high before the sheer scale of its
gains drew a burst of profit-taking, which in turn helped the
U.S. dollar from two-year lows.             
    The Canadian dollar        was trading 0.2% lower at 1.3382
to the greenback, or 74.73 U.S. cents. The currency, which has
benefited in recent weeks from signs of global economic
recovery, touched its strongest intraday level since June 10 at
    Canadian government bond yields were lower across much of a
flatter curve, with the 10-year             down 3.4 basis
points at 0.489%.
    The move lower in yields came ahead of the start of a
two-day meeting of the U.S. Federal Reserve. The Fed could
confirm recent hints about the benefits of an average inflation
target, which would allow rates to stay lower for longer. 
    Canada's GDP report for May is due on Friday.

 (Reporting by Fergal Smith; Editing by Andrea Ricci)