CANADA FX DEBT-Housing data helps C$ bounce back from last week's selloff

* Canadian dollar at C$1.0919 or 91.58 U.S. cents
    * Bond prices lower across the maturity curve

 (Adds details, quotes, updates prices)
    By Leah Schnurr
    TORONTO, Aug 11 (Reuters) - The Canadian dollar firmed
against the greenback on Monday after data showed domestic
housing starts rose unexpectedly in July, helping the loonie
recover from a selloff late last week.
     The report showed housing starts rose to 200,098 last
month, above forecasts for 193,000. In what is a relatively
light week for domestic economic figures, that data helped put
the loonie on solid footing in morning trading and the currency
picked up momentum through the day. 
    At the same time, risk appetite in broader markets sharpened
as investors were less worried about an escalation in world
geopolitical tensions.
    "Overall, it's just positive risk sentiment that's driven
the Canadian dollar higher, supported by the fact that we had
some positive housing starts numbers that came out this
morning," said Rahim Madhavji, president at
in Toronto.
    Still, the housing starts report is not generally a major
driver of the Canadian dollar, Madhavji said.
    "At the end of the day, this piece of data is not going to
be a major catalyst for the loonie for the rest of the week, or
going forward," he said.
    The Canadian dollar ended the North American
session at C$1.0919 to the greenback, or 91.58 U.S. cents,
stronger than Friday's close of C$1.0971, or 91.15 U.S. cents.
    The lack of domestic data this week could leave the loonie
vulnerable to international events, as well as to the U.S. data
that is on tap, which could push the currency pairing to C$1.10
if it comes in strong, said Don Mikolich, executive director of
foreign exchange sales at CIBC World Markets in Toronto.
    The Canadian dollar sold off on Friday, sending it into the
high C$1.09s after the release of a disappointing Canadian jobs
report for July, which showed growth in the labor market staying
    "The fact that the Canadian dollar has held in to where we
are right now in light of those employment numbers suggests
there is still some underlying demand for being long Canada," 
Mikolich said.
    Canadian government bond prices were lower across the
maturity curve, with the two-year off half a Canadian
cent to yield 1.062 percent, and the benchmark 10-year
 down 1 Canadian cent to yield 2.073 percent.

 (Editing by Peter Galloway)