CANADA FX DEBT-Canadian dollar falls as inflation data within expectations

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 (Adds strategist quote and details throughout; updates prices)
    * Canadian dollar weakens 0.3% against the greenback
    * Touches weakest level since Oct. 6 at 1.2609
    * Price of U.S. oil falls 3.2%
    * Canadian bond yields ease across the curve

    By Fergal Smith
    TORONTO, Nov 17 (Businesshala) - The Canadian dollar weakened to
its lowest level in nearly six weeks against the greenback on
Wednesday, as oil prices fell and domestic data, that showed
inflation rising in line with expectations, contributed to a
drop in Canadian bond yields.
    The loonie        was trading 0.3% lower at 1.2600 to the
greenback, or 79.37 U.S. cents, after touching its weakest
intraday level since Oct. 6 at 1.2609.
    Canada's annual inflation rate accelerated to 4.7% in
October, its highest level since February 2003, as energy prices
jumped. The increase matched analysts estimates.             
    The data "has weighed on front-end Canadian bond yields as
the print fell in line with expectations at a time when CPI
releases are generally surprising to the upside," said Simon
Harvey, senior FX market analyst for Monex Europe and Monex
Canada.
    Sterling        was one of the top performing G10 currencies
after data showed a jump in British inflation that surpassed
analyst estimates.                         
    The Canadian 2-year yield            eased 5.7 basis points
to 0.998%, while the 10-year             was down 6.1 basis
points at 1.718%. Earlier in the day, the 10-year rate touched
its highest level since April 2019 at 1.811%.
    The price of oil, one of Canada's major exports, declined
after the International Energy Agency (IEA) and OPEC warned of
impending oversupply and as COVID-19 cases in Europe increased
the downside risks to demand recovery.             
    U.S. crude        prices fell 3.2% to $78.15 a barrel.
    Separate data showed that Canadian home prices were flat in
October from September as a slowdown in housing sales weighed.
            
    Meanwhile, Canada deployed the air force to help British
Columbia deal with massive floods that cut access to the
country's largest port and stranded thousands with more rain
expected in coming days.             

 (Reporting by Fergal Smith
Editing by Bernadette Baum)
  
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