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CANADA FX DEBT-C$ slides to 1-week low, tracking downward shift in risk appetite

 (Adds strategist quotes and details throughout, updates prices)
    * Canadian dollar falls 0.6% against the greenback
    * Price of U.S. oil declines 0.2%
    * Canadian home sales rise to monthly record
    * Canadian bond yields were mixed across the curve

    By Fergal Smith
    TORONTO, Oct 15 (Reuters) - The Canadian dollar fell to a
one-week low against the greenback on Thursday, as investor
worries about the outlook for the global economy overshadowed
domestic data showing a buoyant housing market.
    The loonie        was trading 0.6% lower at 1.3220 to the
greenback, or 75.64 U.S. cents. The currency touched its weakest
intraday level since last Thursday at 1.3259.
    "CAD is trading as a risk proxy within the G10 world," said
Christian Lawrence, a senior market strategist at Rabobank.
    Canada runs a current account deficit and is a major
producer of commodities, including oil, so the Canadian dollar
tends to be sensitive to the global flow of trade and capital.
    The two-week rolling correlation between the loonie and the
S&P 500 has climbed since the start of the month to move above
0.9, Refinitiv Eikon data showed, indicating the currency and
the stock market are moving largely in the same direction.
    U.S. stocks fell, although clawing back some of their
earlier decline, as an unexpected rise in weekly jobless claims
compounded fears of a stalling economic recovery.             
    U.S. crude oil futures        settled 0.2% lower at $40.96 a
barrel as new restrictions to stem a surge in COVID-19
infections dimmed prospects for fuel demand.             
    In domestic data, home sales climbed 0.9% in September from
August, raising them to a monthly record for the third month in
a row.             
    But the data had little impact on the currency. "Domestic
releases aren't moving the needle" in the current environment,
Lawrence said.
    Canadian government bond yields were mixed across the curve,
with the 10-year             down less than one basis point at
0.572%.

 (Reporting by Fergal Smith; Editing by Marguerita Choy and
Peter Cooney)
  
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