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CANADA FX DEBT-C$ gains as inflation data supports dialing back BoC crisis programs

    * Canadian dollar rises 0.1% against the greenback
    * Canada's annual inflation rate rises to 0.7% in October
    * Price of U.S. oil increases 1.2%
    * Canadian bond yields trade mixed across a flatter curve

    By Fergal Smith
    TORONTO, Nov 18 (Reuters) - The Canadian dollar rose against
the greenback on Wednesday as positive news on a COVID-19
vaccine boosted oil prices and after data showing higher
underlying inflation supported the Bank of Canada's decision to
cut back on emergency stimulus measures.
    Canada's annual inflation rate rose to 0.7% in October from
0.5% in September, mainly on higher food prices, Statistics
Canada said, while the average of three underlying measures that
are closely watched by the Bank of Canada was up at 1.8%
year-over-year from 1.7%.             
    "Core inflation has been very resilient over the pandemic
period so far," said Derek Holt, vice president of capital
markets economics at Scotiabank. 
    It justifies the Bank of Canada "backing away from some of
the stimulus measures so far," Holt said.
    Last month, the central bank reduced its bond-buying program
to C$4 billion per week from C$5 billion. Some other emergency
measures to support financial markets during the coronavirus
crisis have been wound down.
    The price of oil, one of Canada's major exports, rose on
hopes OPEC and its allies will delay a planned increase in oil
output and after Pfizer said its COVID-19 vaccine was more
effective than previously reported.             
    U.S. crude        prices were up 1.2% at $41.94 a barrel,
while the Canadian dollar        was trading 0.1% higher at
1.3090 to the greenback, or 76.39 U.S. cents. The currency
traded in a range of 1.3056 to 1.3117.
    Canadian home prices rose 1.3% in October from September,
the Teranet-National Bank Composite House Price Index showed.
That was the strongest gain for an October in the index's 22
years.             
    Canada's retail sales report for September is due on Friday.
    Canadian government bond yields were mixed across a flatter
curve, with the 10-year             down 4.2 basis points at
0.696%.

 (Reporting by Fergal Smith
Editing by Nick Zieminski)
  
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