November 13, 2017 / 3:10 PM / in a month

CANADA FX DEBT-C$ pares some recent gains as risk appetite slips

    * Canadian dollar at C$1.2724, or 78.59 U.S. cents
    * Bond market closed in lieu of Remembrance Day

    TORONTO, Nov 13 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Monday, paring some of its
recent gains despite higher oil prices, as uncertain prospects
for a U.S. tax overhaul weighed on risk appetite.
    Uncertainty over a U.S. tax overhaul deal pushed world stock
markets further away from recent record highs. Canada's
commodity-linked currency tends to lose ground when investors
become risk-averse.             
    Foreign exchange investors also turned their attention to a
central bank conference on Tuesday.             
    At 9:55 a.m. EST (1455 GMT), the Canadian dollar         
was trading at C$1.2724 to the greenback, or 78.59 U.S. cents,
down 0.3 percent.
    The currency traded in a range of C$1.2671 to C$1.2727. On
Friday, it touched its strongest in more than two weeks at
C$1.2666.
    Oil, one of Canada's major exports, was supported by Middle
East tensions and record long bets by fund managers.
            
    U.S. crude        prices were up 0.30 percent at $56.91 a
barrel.
    But the Canadian dollar was unlikely to recapture its tight
link with the price of oil even as the interest rate outlook
settles, given that crude trades far removed from levels needed
to affect investment in Canada's energy sector, economists and
strategists said.             
    Canada's bond market was closed on Monday in lieu of
Remembrance Day.
    Canada's manufacturing sales data for September is due on
Thursday and the October inflation report will be released on
Friday.
    Economists expect the annual inflation rate to have cooled
to 1.4 percent in October, which will likely give the Bank of
Canada room to take its time raising interest rates after two
back-to-back hikes earlier this year.

 (Reporting by Fergal Smith
editing by Jonathan Oatis)
  

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