CANADA FX DEBT-C$ gains despite strong greenback as America votes
* Canadian dollar settles at C$1.3305, or 75.16 U.S. cents * Currency notches strongest close since Oct. 24 * Bond prices lower across the yield curve By Alastair Sharp TORONTO, Nov 8 (Reuters) - The Canadian dollar gained against a broadly higher U.S. currency on Tuesday, supported by expectations that Democratic presidential candidate Hillary Clinton is likely to prevail over Republican rival Donald Trump in the U.S. election. The Canadian dollar settled at C$1.3305 to the greenback, or 75.16 U.S. cents, stronger than Monday's close of C$1.3372, or 74.78 U.S. cents. That was its strongest close since Oct. 24, and comes after it touched its weakest level since March at C$1.3466 on Friday. A potential victory for Clinton is seen as less of a threat to Canada's trade-intensive economy than a win for Trump, who has said he would renegotiate or scrap the North American Free Trade Agreement if elected. But the end of the acrimonious campaign could turn focus for the country's currency to other catalysts including the outlook for oil, a major Canadian export. "A clear path to the White House for her would probably mean that fundamentals are coming back, and that is where the Canadian dollar could face some issues," said Alfonso Esparza, a senior market analyst at OANDA. He pointed to a reading of U.S. oil inventories due on Wednesday and a meeting of oil producers later this month seeking agreement on a production cut as key drivers for the loonie post-election. The Canadian currency's strongest level of the session was C$1.3286, while its weakest was C$1.3391. Oil prices settled little changed on the day. Canadian housing starts slowed in October as condo construction slipped after a surge in September, data from the national housing agency showed. In other domestic data, the value of building permits fell by 7 percent in September from August, the biggest drop in eight months, data from Statistics Canada showed. Canadian government bond prices were lower across the yield curve, with the two-year down 5.5 Canadian cents to yield 0.582 percent and the benchmark 10-year falling 49 Canadian cents to yield 1.273 percent. Structural weaknesses are weighing heavily on Canada's export sector but an improved mix of fiscal and monetary policy has taken some pressure off the central bank to stimulate demand, a senior Bank of Canada official said. The federal Liberal government is pouring money into infrastructure spending in a bid to revitalize a limping economy, investment Bank of Canada Governor Stephen Poloz has supported. (Additional reporting by Fergal Smith, editing by G Crosse)
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