CANADA FX DEBT-Canadian dollar weakens ahead of speech by senior BoC official

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    * Canadian dollar weakens 0.2% against the greenback
    * Loonie trades in a range of 1.2492 to 1.2546
    * Canadian housing starts fall 5.3% in October
    * Canadian 10-year yield touches its highest since May 2019

    By Fergal Smith
    TORONTO, Nov 16 (Businesshala) - The Canadian dollar edged lower
against its broadly stronger U.S. counterpart on Tuesday as
domestic data showed a slowdown in housing starts and investors
awaited a speech by Bank of Canada Deputy Governor Lawrence
Schembri.
    The loonie        was trading 0.2% lower at 1.2540 to the
greenback, or 79.74 U.S. cents, after trading in a range of
1.2492 to 1.2546.
    "Schembri is likely to generally stick to the BoC's script
that Canada has recovered all lost jobs due to the pandemic and
then some, but that's not good enough yet as there are ongoing
pockets of underemployment," Derek Holt, head of capital markets
economics at Scotiabank, said in a note.
    The deputy governor's speech on labor market uncertainties
and monetary policy is due at 12 ET (1700 GMT).
    Canadian housing starts fell 5.3% in October compared with
the previous month as a decrease in multiple urban
groundbreakings outweighed a slight increase in single-detached
urban starts, data from the national housing agency showed.
                
    The U.S. dollar        rose to its highest level in 16
months against a basket of major currencies, adding to gains
since hotter-than-expected U.S. inflation data last week fueled
speculation that the Federal Reserve may raise interest rates
sooner than expected.             
     The price of oil, one of Canada's major exports, edged
lower on forecasts of an increase in global production in coming
months and concerns over rising coronavirus cases in Europe.
U.S. crude        prices were down 0.1% at $80.8 a barrel.
                  
    Canadian government bond yields were higher across the
curve, tracking the move in U.S. Treasuries after data showed
that U.S. retail sales rose more than expected in October.
    The 10-year             touched its highest level since May
2019 at 1.777% before dipping to 1.747%, up 2 basis points on
the day.

 (Reporting by Fergal Smith; editing by Jonathan Oatis)
  
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