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CANADA FX DEBT-Canadian dollar notches a 2-month high as risk appetite climbs

 (Adds strategist quotes and updates prices)
    * Canadian dollar gains 0.7% against the greenback
    * Loonie touches its strongest since Sept. 1 at 1.3024
    * Price of U.S. oil settles 0.9% lower
    * Canadian bond yields trade mixed across a steeper curve

    By Fergal Smith
    TORONTO, Nov 5 (Reuters) - The Canadian dollar strengthened
against its U.S. counterpart on Thursday as a rally in global
shares after the U.S. election pressured the greenback, with
investors weighing the policy implications of a potentially
divided U.S. Congress.
    The loonie        was trading 0.7% higher at 1.3050 to the
greenback, or 76.63 U.S. cents. The currency touched its
strongest intraday level since Sept. 1 at 1.3024.
    "The loonie continues to get a boost from the move back into
risk assets across the board," said Amo Sahota, director at
Klarity FX in San Francisco. "This is mainly at the expense of
the greenback."
    The safe-haven U.S. dollar        slumped against a basket
of major currencies, as global stocks rallied and the Fed
pledged again to do whatever it can in coming months to sustain
a U.S. economic recovery threatened by a spreading coronavirus
pandemic and facing uncertainty over a still undecided
presidential election.             
    It's uncertain when a U.S. coronavirus relief package will
be produced or how big it will be, "so we could still see some
jitters," Sahota said.
    A potentially divided Congress could lead to policy gridlock
in Washington, raising doubts over prospects for economic
stimulus. A large stimulus package would bolster the outlook for
Canada's commodity-linked currency, FX strategists said in a
Reuters poll.             
    The price of oil       , one of Canada's major exports,
settled 0.9% lower at $38.79 a barrel.              
    Canada's jobs report for October is due on Friday, which
could offer some clues about the strength of Canada's economic
recovery.
    Canadian government bond yields were mixed across a steeper
curve, with the 10-year             up about half a basis point
at 0.616%.

 (Reporting by Fergal Smith; Editing by Chizu Nomiyama and Grant
McCool)
  
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