CANADA FX DEBT-C$ drops to one-week low as oil and stocks slide

    * Canadian dollar at C$1.2782, or 78.24 U.S. cents
    * Loonie touches its weakest since Nov. 7 at C$1.2784
    * Oil falls for fourth straight day
    * Bond prices higher across a flatter yield curve

    By Fergal Smith
    TORONTO, Nov 15 (Reuters) - The Canadian dollar weakened to
a one-week low against its U.S. counterpart on Wednesday as oil
and stocks fell, while investors weighed trade uncertainties
ahead of the resumption of NAFTA renegotiations.
    At 9:12 a.m. ET (1412 GMT), the Canadian dollar          was
trading at C$1.2782 to the greenback, or 78.24 U.S. cents, down
0.4 percent.
    The currency's strongest level of the session was C$1.2714,
while it touched its weakest since Nov. 7 at C$1.2784.
    Prices of oil, one of Canada's major exports, slipped for a
fourth day on a gloomy outlook for oil demand growth from the
International Energy Agency.             
    U.S. crude        prices fell 0.99 percent to $55.15 a
    World stocks were set for their longest losing streak in
more than six months, while the U.S. dollar        lost ground
against a basket of major currencies amid doubts about prospects
for a U.S. tax plan.                         
    U.S. Senate Republicans on Tuesday linked repealing a key
component of Obamacare to their ambitious tax-cut plan, raising
new political risks and uncertainties for the tax measure that
financial markets have been monitoring closely for months.
    On Tuesday, the Canadian government launched a North
American Free Trade Agreement challenge of the U.S. Commerce
Department's decision earlier this month to impose duties on
softwood lumber exports from its northern neighbor.             
    NAFTA working groups are due to begin meeting from Wednesday
in Mexico. On Friday, talks will get underway and continue
through Nov. 21.
    "Uncertainty about trade protectionism is one factor likely
to sideline the Bank (of Canada) until March," Sal Guatieri,
senior economist at BMO Capital Markets, said in a research
    Bank of Canada Senior Deputy Governor Carolyn Wilkins will
give a speech on Wednesday evening in New York on monetary
policy amid uncertainty.
    Canadian government bond prices were higher across a flatter
yield curve in sympathy with U.S. Treasuries. The two-year
           rose 3 Canadian cents to yield 1.445 percent and the
10-year             climbed 24 Canadian cents to yield 1.922
    In domestic data, resales of Canadian homes rose 0.9 percent
in October from September, the third straight monthly rise.
    Canada's manufacturing sales data for September is due on
Thursday and the October inflation report will be released on

 (Reporting by Fergal Smith; Editing by Bernadette Baum)