(Adds strategist comments and details throughout; updates
prices)

* Canadian dollar falls 0.2% against greenback

* Loonie touches its strongest intraday since Sept. 21 at
1.3242

* Canada’s exports, imports both fall in August

* Canadian bond yields ease across a flatter curve

By Fergal Smith

TORONTO, Oct 6 (Reuters) – The Canadian dollar weakened
against the greenback on Tuesday as investor hopes for U.S.
stimulus receded and data showed a slowdown in Canada’s
merchandise trade, with the loonie pulling back from an earlier
two-week high despite climbing oil prices.

U.S. stocks fell sharply after President Donald Trump said
he was calling off negotiations with Democratic lawmakers on
coronavirus relief legislation until after the November
election.

Canada sends about 75% of its exports to the United States,
including oil. U.S. crude oil futures settled 3.7% higher
at $40.67 a barrel, supported by U.S. supply disruptions caused
by an approaching hurricane in the Gulf of Mexico.

“Something that has been evident in the last month or so is
that the path of least resistance for USD-CAD has been higher,”
said Simon Harvey, FX market analyst for Monex Europe and Monex
Canada.

“This has continued in today’s session, evidenced by the
loonie following the broad G10 move lower against the (U.S.)
dollar on a day where WTI rallies back above $40,” Harvey said.

The Canadian dollar was trading 0.2% lower at 1.3290
to the greenback, or 75.24 U.S. cents. It touched its strongest
level since Sept. 21 at 1.3242 before turning lower.

Since the beginning of September, the loonie has fallen
nearly 2%.

Canada’s exports and imports both fell in August, hinting
that the momentum of the recovery from the COVID-19 crisis could
have slowed more than anticipated, data from Statistics Canada
showed.

Separate data showed that home sales in the area

By Alun John and Tom Westbrook

SINGAPORE, Oct 6 (Reuters)Asian stock markets advanced to a two-week high on Tuesday after U.S. President Donald Trump was discharged from hospital following treatment for COVID-19 and as prospects for a fresh U.S. stimulus package appeared to brighten.

Bonds and the dollar nursed losses amid the improving risk appetite, while oil extended gains.

Trump returned to the White House on Monday after a three-night hospital stay and said he felt “real good”, though one of his doctors cautioned that he may not be out of the woods yet.

MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 0.71% to a two week-high, led by Hong Kong .HSI climbing 0.88%. Japan’s Nikkei .N225 also added 0.41%.

Separately, U.S. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin spoke by phone for about an hour and were preparing to talk again Tuesday, continuing their work towards a deal on coronavirus relief spending.

As well as Trump’s health, “there is also some market attention on whether the U.S. Congress will pass the extra stimulus bill,” said Tai Hui, Chief Asia Market Strategist, J.P. Morgan Asset Management

“If we do see some form of stimulus coming through, I think the market will take it in a positive light as much of the important support from the previous round has expired,” he said.

S&P 500 futures ESc1 rose 0.08% after the best daily gain on the S&P 500 index .SPX in a month overnight. Oil held sharp overnight gains. O/R

Australia’s ASX 200 .AXJO was more subdued, up 0.17%, ahead of a central bank meeting at 0330 GMT and the government’s budget later in the day.

China’s markets remain closed for a holiday.

Asian markets on Monday unwound most of a Friday selloff in the

(Adds strategist quotes and details throughout; updates prices)

* Canadian dollar rises 0.3% against the greenback

* Loonie posts its strongest since Sept. 21 at 1.3257

* Price of U.S. oil settled 5.9% higher

* Canadian bond yields climb across a steeper curve

By Fergal Smith

TORONTO, Oct 5 (Reuters) – The Canadian dollar strengthened
to a two-week high against its U.S. counterpart on Monday as the
price of oil, one of Canada’s major exports, rebounded and the
greenback broadly declined, with investors eying domestic jobs
data later in the week.

The loonie was trading 0.3% higher at 1.3262 to the
greenback, or 75.40 U.S. cents. The currency touched its
strongest intraday level since Sept. 21 at 1.3257.

The currency “has likely got a boost from U.S. dollar
weakness and a rebound in the oil price,” said Colin Cieszynski,
chief market strategist at SIA Wealth Management.

The safe-haven U.S. dollar dipped on optimism that
U.S. lawmakers will agree on new stimulus to blunt the economic
impact of the coronavirus pandemic and after U.S. President
Donald Trump said he would leave the hospital where he is being
treated for COVID-19.

U.S. crude oil futures settled 5.9% higher at $39.22
a barrel, while shares on Wall Street also rallied.

Canada’s trade report for August is due on Tuesday, while
the September employment report is set for Friday.

The jobs report will help show the strength of economic
recovery and whether “the Bank of Canada needs to do anything,
anytime soon or does it stay the course,” Cieszynski said.

The central bank has said it will hold interest rates at
near zero until economic activity returns to full capacity.

Canadian government bond yields were higher across a steeper
curve in sympathy with U.S. Treasuries on Monday. The 10-year
rose 4.7 basis points to

TORONTO (Reuters) – The Canadian dollar strengthened to a two-week high against its U.S. counterpart on Monday, tracking improvement in risk appetite ahead of domestic data later in the week that could help guide expectations about the strength of economic recovery.

Global shares <.WORLD> and the price of oil, one of Canada’s major exports, rose as suggestions U.S. President Donald Trump’s health was improving brought relief to markets and after U.S. House Speaker Nancy Pelosi said progress was being made on additional fiscal stimulus.

U.S. crude oil futures <CLc1> climbed 4.7% to $38.78 a barrel, while the Canadian dollar <CAD=> was trading 0.3% higher at 1.3268 to the greenback, or 75.37 U.S. cents. The currency touched its strongest intraday level since Sept. 21 at 1.3263.

Canada’s trade report for August is due on Tuesday, while Bank of Canada Governor Tiff Macklem is scheduled to speak on Thursday and the September employment report is due on Friday.

The Canadian dollar is set to gain ground against its U.S. counterpart as an expected recovery in the global economy from the coronavirus crisis improves the outlook for commodity prices, a Reuters poll showed.

Still, speculators have raised their bearish bets on the Canadian dollar to the highest in four weeks, data from the U.S. Commodity Futures Trading Commission showed on Friday. As of Sept. 29, net short positions had increased to 18,948 contracts from 18,882 in the prior week.

Canadian government bond yields were higher across a steeper curve in sympathy with U.S. Treasuries on Monday. The 10-year <CA10YT=RR> rose 1.6 basis points to 0.584%, while the gap between it and its U.S. equivalent widened by 1.7 basis points to a spread of 14.3 basis points in favor of the U.S. note.

That was the widest spread since June 25.

(Reporting by Fergal