CANADA FX DEBT-Canadian dollar turns higher, tracking uptick in risk appetite

    (Adds strategist quotes and details throughout; updates prices)
    * Canadian dollar rises 0.1% against the greenback
    * Loonie trades in a range of 1.3123 to 1.3177
    * Price of U.S. oil settles 1.5% higher
    * Canadian bond yields increase across a steeper curve

    By Fergal Smith
    TORONTO, Oct 22 (Reuters) - The Canadian dollar edged higher
against its broadly stronger U.S. counterpart on Thursday as
Wall Street clung to hopes of a U.S. coronavirus relief package
and oil prices climbed, with the loonie reversing its earlier
decline.
    The Canadian dollar        was trading 0.1% higher at 1.3138
to the greenback, or 76.12 U.S. cents, having traded in a range
of 1.3123 to 1.3177. Since the start of the month, the loonie
has gained 1.4%.
    "The Canadian dollar is very much following the broader risk
tone again today," said Erik Bregar, Director and Head of FX
Strategy at the Exchange Bank of Canada.
    The catalyst for the improvement in sentiment is not very
clear, but traders have tended to respond positively to comments
on stimulus prospects from U.S. House of Representatives Speaker
Nancy Pelosi, Bregar said.
     Pelosi said negotiators were making progress in talks with
the Trump administration for another round of financial aid and
that legislation could be hammered out "pretty soon."

    Shares on Wall Street gained in choppy trading, as investors
cheered the prospect of more stimulus to support a
pandemic-damaged U.S. economy, with more data pointing to a
slowing labor market recovery.
    Canada sends about 75% of its exports to the United States,
including oil. U.S. crude oil futures        settled 1.5% higher
at $40.64 a barrel, while the U.S. dollar rebounded from
seven-week lows against a basket of major currencies.

    The Canadian economic recovery from the coronavirus
recession will be significantly slower than previously thought,
with a high risk a resurgence in cases will halt the rebound
underway, according to a Reuters poll of economists.

    Canadian government bond yields moved higher across a
steeper curve in sympathy with U.S. Treasuries. The 10-year
            rose 2.4 basis points to 0.643%.
    On Wednesday, it touched its highest intraday level in
nearly eight weeks at 0.679%.

 (Reporting by Fergal Smith; editing by Jonathan Oatis)

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