CANADA FX DEBT-Oil lifts C$, risk aversion fades, bonds gain
* Canadian dollar supported by oil, risk aversion fades
* Bonds higher across the curve despite stock rally
* Focus on Tuesday's Bank of Canada interest rate decision
* Housing starts fall 18.8 pct in Nov, below expectations
TORONTO, Dec 8 (Reuters) - The Canadian dollar jumped versus the U.S. dollar on Monday, spurred by gains in the price of oil and as risk aversion and political turmoil in Ottawa faded.
Canadian bond prices headed higher on their safe haven appeal even as stock markets rallied.
At 10:30 a.m. (1530 GMT), the Canadian dollar was at C$1.2548 to the U.S. dollar, or 79.69 U.S. cents, up from C$1.2709 to the U.S. dollar, or 78.68 U.S. cents, at Friday's close.
Risk aversion, which has seen the U.S. dollar rise on safe haven interest recently, cooled as talk of an imminent bailout deal for the big three U.S. automakers and other government stimulus measures boosted global equity markets.
Over the weekend, U.S. President-elect Barack Obama unveiled an economic recovery plan that analysts said could cost at least $500 billion, include the creation of 2.5 million jobs by 2011, and launch of the largest U.S. infrastructure investment since the 1950s. Continued...