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CANADA FX DEBT-C$ little changed against greenback, holds in recent range

Karen Brettell

* Improving risk appetite fails to support loonie

* Canadian bond yields rise modestly

NEW YORK, Aug 26 (Reuters) - The Canadian dollar was little changed against the greenback on Monday despite improving risk sentiment, and the loonie held the middle of its recent range as investors continued to focus on the fallout of the U.S.-China trade war. The United States and China sought to ease trade war tensions on Monday, with Beijing calling for calm and U.S. President Donald Trump predicting a deal after markets fell in response to new tariffs from both countries. That boosted risk sentiment and sent stock and oil prices higher, but had little impact on the Canadian currency.

Canada exports many commodities, including oil, so its economy could be hurt by a slowdown in the flow of global trade. The CAD is little changed on the session today, despite better risk sentiment, analysts at Scotiabank said in a report on Monday. This is all a little disappointing for the CAD considering that domestic data releases were roundly better than expected last week. Data last week showed Canada retail sales in June and inflation in July both beat expectations.

The Canadian dollar was last down 0.08% at 1.3294

to the greenback. It has held between 1.3248 and 1.3344 since Aug. 15.

Ten-year Canadian bond yields rose to 1.19% from

1.17% late on Friday.

(Reporting by Karen Brettell; editing by Jonathan Oatis)