CANADA FX DEBT-C$ recovers from near 3-week low as oil prices rise

* Canadian dollar at $1.3400, or 74.63 U.S. cents
    * Loonie touches weakest level since Oct. 1 at C$1.3434
    * Bond prices lower across the yield curve

    TORONTO, Dec 20 (Reuters) - The Canadian dollar strengthened
slightly against its U.S. counterpart on Tuesday, recovering
from near a three-week low earlier, as higher oil prices and
stronger-than-expected domestic data offset broader gains for
the greenback.
    The value of Canadian wholesale trade rose 1.1 percent in
October, the biggest gain in five months, data from Statistics
Canada showed. In volume terms, sales were up 0.9 percent, which
could bode well for broader economic growth at the start of the
fourth quarter.    
    Prices of oil, one of Canada's major exports, rose on
forecasts of a steep draw in U.S. crude oil stocks that could
indicate a global oversupply is starting to shrink. 
    U.S. crude prices were up 0.88 percent at $52.58 a
    At 9:09 a.m. EST (1409 GMT), the Canadian dollar 
was trading at C$1.3400 to the greenback, or 74.63 U.S. cents,
stronger than Monday's close of C$1.3417, or 74.53 U.S. cents.
    The currency's strongest level of the session was C$1.3396,
while it touched its weakest intraday level since Oct. 1 at
C$1.3434, pressured by the recent drop in Canadian yields below
U.S. Treasuries.
    The U.S. dollar made a fresh 14-year high, boosted by
upbeat comments from Federal Reserve Chair Janet Yellen that
kept alive market expectations for swifter U.S. interest rate
hikes next year than had been expected. The yen fell after the
Bank of Japan held policy steady and fallout from attacks in
Germany and Turkey subdued the euro.
    Canadian government bond prices were lower across the yield
curve in sympathy with U.S. Treasuries. The two-year 
price fell 4 Canadian cents to yield 0.823 percent and the
benchmark 10-year declined 17 Canadian cents to
yield 1.803 percent.
    The 10-year yield fell 1.3 basis points further below its
U.S. equivalent to a spread of -77 basis points as U.S.
Treasuries underperformed.
    Reports on Canadian inflation for November and retail sales
for October are due on Thursday, while gross domestic product
data for October is awaited at the end of the week. 

 (Reporting by Fergal Smith; Editing by Paul Simao)