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CANADA FX DEBT-C$ sees biggest weekly drop since April as stocks tumble

 (Adds dealer quotes and details throughout; updates prices)
    * Canadian dollar falls 1.5% for the week
    * Canadian GDP gains 1.2% in August
    * Price of U.S. oil settles 1.1% lower
    * Canadian bond yields rise across the curve

    By Fergal Smith
    TORONTO, Oct 30 (Reuters) - The Canadian dollar was little
changed against its broadly stronger U.S. counterpart on Friday
as data showed further recovery in Canada's economy, with the
currency steadying after a sharp decline earlier in the week.
    The Canadian dollar        was trading nearly unchanged at
1.3320 to the greenback, or 75.08 U.S. cents, having traded in a
range of 1.3280 to 1.3348.
    For the month it was also nearly unchanged, after falling
since the start of the week by 1.5%, its biggest weekly decline
since April.
    The sell-off this week for the loonie is part of "a broader
move that is linked to the equity pullback," said Simon Côté,
managing director, risk management solutions at National Bank
Financial, adding that the currency's decline encouraged many
corporate clients to step into the market to hedge their U.S.
dollar receivables.
    Canada runs a current account deficit and is a major
producer of commodities, including oil, so the loonie tends to
be sensitive to the global flow of trade and capital.
    Wall Street's major indexes tumbled, dragged down by a slide
in shares of tech heavyweights following their quarterly
results, with a record rise in coronavirus cases and nerves over
next week's U.S. presidential election adding to a downbeat
mood.
    "The market doesn't like uncertainty and to the extent that
the election brings uncertainty it could shake the market
again," Côté said.        
    The safe-haven U.S. dollar        rose against a basket of
major currencies, while U.S. crude oil futures        settled
1.1% lower at $35.79 a barrel as rising COVID-19 infections
heightened concerns over the demand outlook.             
    The Canadian economy grew by 1.2% in August, the fourth
consecutive monthly gain, while a flash estimate showed further
expansion of 0.7% in September.                 
    Canadian government bond yields rose across the curve, with
the 5-year            up 3.8 basis points at 0.405%.

 (Reporting by Fergal Smith; editing by Jonathan Oatis and
Pritha Sarkar)
  
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