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CANADA FX DEBT-Canadian dollar strengthens for 4th week as oil climbs

 (Adds details on activity, updates prices)
    * Loonie touches its strongest level since July 6 at 1.2337
    * Canadian wholesale trade increases 0.3% in August 
    * Price of U.S. oil settles 1.2% higher
    * Canadian bond yields move higher across the curve

    By Fergal Smith
    TORONTO, Oct 15 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Friday but held on to most of
this week's gains as oil prices rose and risk appetite
increased.    
    The loonie        was trading 0.2% lower at 1.2389 to the
greenback, or 80.89 U.S. cents, after touching its strongest
intraday level since July 6 at 1.2337.
    For the week, the currency was up 0.6%, its fourth straight
week of gains.
    "The pro-risk mood is CAD-supportive alongside high energy
prices," strategists at Scotiabank, including Shaun Osborne,
said in a note.
    Stocks rallied globally          after a run of strong U.S.
corporate earnings reports fueled optimism about the economy,
though a seven-year-high for the price of oil, one of Canada's
major exports, kept inflation risks alive and supported
government bond yields.             
    U.S. crude oil futures        settled 1.2% higher at $82.28
a barrel on forecasts of a supply deficit over the next few
months as the easing of coronavirus-related travel restrictions
spurs demand.                  
    Friday's decline for the loonie came as domestic data showed
wholesale trade rising 0.3% in August from July, a smaller gain
than analysts expected.             
    Separate data showed that Canadian home sales rose 0.9% in
September from August after declining for five straight months.
             
    Meanwhile, the U.S. dollar got a lift against a basket of
major currencies as data showed U.S. retail sales climbing in
September.             
    Canadian government bond yields were higher across the curve
on Friday, tracking the move in U.S. Treasuries. The 10-year
            rose 4.1 basis points to 1.578% but held well below
Tuesday's peak of 1.683%, which was the highest since January
2020.

 (Reporting by Fergal Smith;
Editing by Alison Williams)
  
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