(Adds strategist quotes and details throughout; updates prices) * Canadian dollar falls 0.4% against the greenback * Loonie trades in a range of 1.2761 to 1.2843 * Price of U.S. oil settles 2.6% higher * Canadian bond yields trade mixed across the curve By Fergal Smith TORONTO, Feb 1 (Reuters) - The Canadian dollar lost ground against its U.S. counterpart on Monday, as domestic data showed factory activity growing at the slowest pace in six months and the recent strong ties the loonie has had with oil and stocks showed signs of weakening. The loonie was trading 0.4% lower at 1.2822 to the greenback, or 77.99 U.S. cents, having traded in a range of 1.2761 to 1.2843. It was the second straight session the loonie traded in the opposite direction of oil, one of Canada"s major exports, and stocks. It has a three-month rolling correlation of nearly 0.9 with the S&P 500 and U.S. crude futures , Refinitiv Eikon data shows, indicating the currency moves mostly in the same direction as those two markets. "I think we are witnessing a breakdown of the really high correlations within the "everything trade" sparked by QE (quantitative easing)," said Greg Anderson, global head of foreign exchange strategy at BMO Capital Markets in New York. The S&P 500 was up 1.8%, while crude settled 2.6% higher at $53.55 a barrel as one of the worst snowstorms in years hit the U.S. Northeast, raising winter fuel demand. "It"s probably a good thing that assets are starting to show differentiation based on their own fundamentals and their own positioning dynamics," Anderson said. "Based on its fundamentals, I still expect CAD to appreciate over the medium term." The IHS Markit Canada Manufacturing Purchasing Managers" index fell to a seasonally adjusted 54.4 in January, its lowest since July, from 57.9 in December but remaining well above the 50 threshold that marks expansion in the sector. Canada"s employment report for January is due on Friday, which could help guide interest rate expectations. Canadian government bond yields were mixed across the curve, with the 10-year down half a basis point at 0.884%. (Reporting by Fergal Smith; Editing by Jonathan Oatis and Peter Cooney)