CANADA FX DEBT-C$ firms ahead of business survey as oil prices rise

    * Canadian dollar rises 0.1 percent against the greenback
    * Price of U.S. oil rises 0.5 percent
    * Resales of Canadian homes dip 0.4 percent in September
    * Canada-U.S. 10-year spread widens by 2.5 basis points

    TORONTO, Oct 15 (Reuters) - The Canadian dollar edged higher
against its U.S. counterpart on Monday ahead of the release of a
business survey by the Bank of Canada, as the price of oil was
boosted by growing tensions between Western powers and Saudi
    The price of oil, one of Canada's major exports, rose as
tension over the disappearance of a prominent Saudi journalist
stoked supply worries, although concerns over the long-term
demand outlook dragged on sentiment.             
    U.S. crude        prices were up 0.5 percent at $71.71 a
    The Bank of Canada's autumn issue of the Business Outlook
Survey is due for release at 10:30 a.m. (1430 GMT).
    The data could help guide expectations for the Bank of
Canada interest rate decision next week. Although some responses
to the survey could have been collected before a recent deal to
revamp the North American Free Trade Agreement reduced
uncertainty for the country's economy.
    Money markets see a nearly 90-percent chance of a rate hike
at the Oct. 24 rate announcement.
    Resales of Canadian homes dipped 0.4 percent in September
from August, the first decline since April, the Canadian Real
Estate Association said.             
    At 9:29 a.m. (1329 GMT), the Canadian dollar          was
trading 0.1 percent higher at 1.3013 to the greenback, or 76.85
U.S. cents. The currency traded in a narrow range of 1.3005 to
    Last week, the loonie declined 0.6 percent as worries over
higher bond yields and the impact of trade tariffs contributed
to volatility in global financial markets.    
    Still, speculators have cut bearish bets on the Canadian
dollar to the lowest since March, data from the U.S. Commodity
Futures Trading Commission and Reuters calculations showed on
Friday. As of Oct. 9, net short positions had decreased to
12,145 contracts from 18,484 a week earlier.
    Canadian government bond prices were mixed across a flatter
yield curve, with 10-year             rising 12 Canadian cents
to yield 2.485 percent.
    The gap between Canada's 10-year yield and its U.S.
counterpart widened by 2.5 basis points to a spread of 66.7
basis points in favor of the U.S. bond.

 (Reporting by Fergal Smith
Editing by Nick Zieminski)