CANADA FX DEBT-Canadian dollar weakens as BoC leans against ‘hawkish’ sentiment

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 (Adds analyst quotes and details throughout, updates prices)
    * Canadian dollar weakens 0.4% against the greenback
    * Loonie trades in a range of 1.2492 to 1.2565
    * Canadian housing starts fall 5.3% in October
    * Canadian 10-year yield touches its highest since April
2019

    By Fergal Smith
    TORONTO, Nov 16 (Businesshala) - The Canadian dollar weakened
against its U.S. counterpart on Tuesday as the greenback broadly
climbed and a senior Bank of Canada official said there was a
lot of uncertainty about when slack in the economy will be
absorbed.
    The loonie        was trading 0.4% lower at 1.2555 to the
greenback, or 79.65 U.S. cents, after trading in a range of
1.2492 to 1.2565.
    "The USD is holding up well ... helping keep USD-CAD in the
mid 1.25s," said Amo Sahota, director at Klarity FX in San
Francisco.
    The U.S. dollar        rose to a 16-month high against a
basket of major currencies after data showed U.S. retail sales
rose more than expected last month.                  
    The Bank of Canada still expects economic slack to be
absorbed in the middle quarters of 2022, but that does not
necessarily mean in the second quarter, Deputy Governor Lawrence
Schembri said, potentially dashing market hopes of an early rate
hike.              
    Money markets see the central bank hiking as soon as March
and five times in total next year, which is much more tightening
than is expected from the Federal Reserve.                     
    The remarks help moderate some of the "hawkish" sentiment
surrounding the BoC, Sahota said.
    The Canadian inflation report for October, due on Wednesday,
could offer further clues on the Bank of Canada's policy
outlook.
    Canadian housing starts fell 5.3% in October compared with
the previous month, data from the national housing agency showed
on Tuesday.             
     The price of oil, one of Canada's major exports, settled
0.2% lower at $80.76 a barrel on forecasts of an increase in
global production in coming months and concerns over rising
coronavirus cases in Europe.             
    The Canadian 10-year             touched its highest level
since April 2019 at 1.792% before dipping to 1.763%, up 3.6
basis points on the day.

 (Reporting by Fergal Smith; editing by Jonathan Oatis and Nick
Zieminski)
  
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