(Adds investor quotes and details throughout, updates prices) * Canadian dollar rises 0.6% against the greenback * Data shows house prices climbing 1.1% in September * Price of U.S. oil settles 1.5% higher * Canadian bond yields rise across a steeper curve By Fergal Smith TORONTO, Oct 20 (Reuters) - The Canadian dollar extended this month's rally against its U.S. counterpart on Tuesday, as signs of progress on U.S. economic stimulus talks boosted risk appetite and domestic data showed across-the-board gains for home prices in September. Shares on Wall Street climbed after House of Representatives Speaker Nancy Pelosi said she was optimistic Democrats could reach a deal with the White House that could get aid out by early next month. "The Canadian dollar has been associated as a risk currency," said Scott Smith, managing partner at Viewpoint Investment Partners. "So when we see equity markets doing well, the Canadian dollar receives a bump as a result of that." Stimulus could help cushion the economic shock from the coronavirus pandemic. Canada sends about 75% of its exports to the United States, including oil. U.S. crude oil futures settled 1.5% higher at $41.46 a barrel, while the Canadian dollar was up 0.6% at 1.3119 to the greenback, or 76.23 U.S. cents. It touched its strongest intraday level since last Tuesday at 1.3100. Political uncertainty in Ottawa had little impact on the currency, which has gained 1.5% this month. Canadian Prime Minister Justin Trudeau put the fate of his Liberal government on the line, saying an opposition push to probe how Ottawa is tackling the coronavirus pandemic would be put to a confidence vote. On Monday, Canada reported a new COVID-19 milestone, with total infections rising above 200,000 since the pandemic began in early March. Still, domestic data on Tuesday showed house prices notching the second-strongest gain for the month of September on record, with the Teranet-National Bank Composite House Price Index climbing 1.1% from August. Canadian government bond yields rose across a steeper curve in sympathy with U.S. Treasuries. The 10-year was up 1.6 basis points at 0.612%. (Reporting by Fergal Smith; Editing by Steve Orlofsky and Peter Cooney)
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