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CANADA FX DEBT-Canadian dollar falls as Wall Street retreats from record high

 (Adds strategist quotes and details throughout, updates prices)
    * Canadian dollar dips 0.2% against the greenback
    * Price of U.S. oil settles 0.2% higher
    * Canadian wholesale trade rises 0.9% in September
    * Canadian government bond yields ease across a flatter
curve

    By Fergal Smith
    TORONTO, Nov 17 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Tuesday as rising coronavirus
cases weighed on investor sentiment, but a recovery in oil
prices helped the loonie recoup some of its decline.
    The Canadian dollar        was trading 0.2% lower at 1.3095
to the greenback, or 76.37 U.S. cents, having traded in a range
of 1.3063 to 1.3116.
    Wall Street's main indexes fell, with the S&P 500 and the
Dow retreating from record closing highs hit a day earlier,
following disappointing U.S. retail sales data and a spike in
COVID-19 cases across the country.             
    Canada sends about 75% of its exports to the United States,
including oil.
    U.S. crude oil futures        reversed an earlier decline to
settle 0.2% higher at $41.43 a barrel. Hopes for a COVID-19
vaccine and the possibility of tighter supply policies from OPEC
and some other major producers offset surging virus infections.
                
    "There is a gradual recoupling of oil and the Canadian
dollar under way at the moment," said Adam Button, chief
currency analyst at ForexLive.
    "As the market transitions towards a post virus mode,
everything in Canada becomes much more attractive; from banks to
commodities to economic growth," Button said.
    Canadian wholesale trade increased by 0.9% in September from
August, beating analyst expectations, while separate data showed
that housing starts rose 3% in October compared with the
previous month.                             
    Canada's inflation report for October is due on Wednesday.
    Canadian government bond yields were lower across a flatter
curve in sympathy with U.S. Treasuries. The 10-year            
fell 3.2 basis points to 0.706%.    
     Climate change will have a profound impact on Canada's
economy and the country must mobilize quickly to mitigate the
threat as well as capitalize on opportunities, Bank of Canada
Governor Tiff Macklem said.               

 (Reporting by Fergal Smith
Editing by Alistair Bell and Sandra Maler)
  
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