CANADA FX DEBT-Canadian dollar gives back weekly gain on rising risk aversion

    (Adds strategist quotes and details throughout; updates prices)
    * Canadian dollar weakens 0.5% against the greenback
    * Canadian retail sales rise 0.7% in November
    * Price of U.S. oil settles 0.5% lower
    * Canadian bond yields ease across a flatter curve

    By Fergal Smith
    TORONTO, Jan 21 (Reuters) - The Canadian dollar weakened to
a one-week low against its U.S. counterpart on Friday as
disappointing corporate earnings weighed on investor sentiment
and domestic data showed retail sales growing less than expected
in November.
    The loonie        was trading 0.5% lower at 1.2565 to the
greenback, or 79.59 U.S. cents, after touching its weakest level
since last Friday at 1.2568.
    "Global risk sentiment is really in the driver's seat for FX
markets right now," said Erik Nelson, a currency strategist at
Wells Fargo. "CAD is following global equities and oil prices
lower."
    Wall Street's main indexes dropped as Netflix shares plunged
after a weak earnings report that also weighed on rivals,
putting stocks on course to close out a gloomy week on a sour
note.
    The price of oil, one of Canada's major exports, was
pressured by an unexpected rise in U.S. crude and fuel
inventories while investors took profits after the global
benchmarks touched seven-year highs this week.
    U.S. crude        prices settled 0.5% lower at $85.14 a
barrel.
    The loonie fell 0.1% for the week, giving back gains it made
in recent days on rising expectations the Bank of Canada https://www.reuters.com/world/americas/even-omicron-slams-canada-bets-january-rate-hike-rise-2022-01-18
 would hike interest rates at a policy announcement next
Wednesday.
    Canadian retail sales rose 0.7% in November, on higher sales
at gasoline stations and building materials and gardening
equipment and supplies dealers, Statistics Canada said.
    That missed analyst estimates for a 1.2% increase, while
preliminary data showed sales falling 2.1% in December.
    Canadian government bond yields were lower across a flatter
curve, tracking the move in U.S. Treasuries. The 10-year
            eased 4.3 basis points to 1.790%, pulling back from
its highest level in nearly three years on Wednesday at 1.905%.

 (Reporting by Fergal Smith; Editing by Barbara Lewis and Alison
Williams)

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