CANADA FX DEBT-C$ strengthens against softer greenback as oil climbs

    * Canadian dollar at C$1.2496, or 80.03 U.S. cents
    * Loonie touches its strongest since Thursday
    * U.S. crude        prices climb 1.73 percent
    * Bond prices lower across the yield curve

    TORONTO, Oct 10 (Reuters) - The Canadian dollar strengthened
against its U.S. counterpart on Tuesday as oil rose and the
greenback lost ground against a basket of major currencies.
    At 9:16 a.m. ET (1316 GMT), the Canadian dollar          was
trading at C$1.2496 to the greenback, or 80.03 U.S. cents, up
0.4 percent.
    The currency's weakest level of the session was C$1.2555,
while it touched its strongest since Thursday at C$1.2495.
    Canada's bond and stock markets were closed on Monday due to
the Thanksgiving Day holiday.    
    Prices of oil, one of Canada's major exports, were supported
by Saudi Arabian export cuts for November and comments from OPEC
and trading companies that the market is rebalancing after years
of oversupply. U.S. crude        prices were up 1.73 percent at
$50.44 a barrel.                     
    The U.S. dollar        broadly fell after
stronger-than-expected German trade data boosted the euro.
    Bank of Canada Senior Deputy Governor Carolyn Wilkins will
participate in a panel discussion at 2 p.m. ET (1800 GMT) for
the International Monetary Fund Annual Meetings Seminar series.
The topic is "Systemic Risk and Macroprudential Stress Testing."
    Domestic data on Friday showed a pickup in wages and reduced
worries that the economy will slow in the second half of the
    Speculators have raised bullish bets on the loonie to the
highest since November 2012, data from the U.S. Commodity
Futures Trading Commission and Reuters calculations showed on
    On Tuesday, data showed that the value of Canadian building
permits fell 5.5 percent in August, surpassing forecasts for a
decline of 1.0 percent.             
    In separate data, seasonally adjusted housing starts rose to
217,118 in September, compared with a revised 225,918 units in
    Canadian government bond prices edged lower across the yield
curve, with the two-year            down 1.5 Canadian cents to
yield 1.559 percent and the 10-year             falling 2
Canadian cents to yield 2.13 percent.
    Canadian Prime Minister Justin Trudeau will meet President
Donald Trump on Wednesday. He will try to persuade the U.S.
leader to focus on Mexico as a source of potential problems at
talks to update the North American Free Trade

 (Reporting by Fergal Smith; editing by Susan Thomas)