CANADA FX DEBT-Canadian dollar pares weekly decline, lifted by domestic data

    * Canadian dollar rises 0.1% against the greenback
    * Canadian retail sales rise fall 0.1% in September
    * Loonie is on track to decline 0.4% for the week
    * Canadian bond prices edge lower across the yield curve

    TORONTO, Nov 22 (Reuters) - The Canadian dollar strengthened
against its U.S. counterpart on Friday, paring some of this
week's decline, as investors grew more optimistic on a
U.S.-China trade deal and after domestic data showed growth in
underlying retail sales.
    Canadian retail sales were down 0.1% in September from
August, matching estimates, data from Statistics Canada showed.
Excluding motor vehicle and parts dealers and gasoline stations,
sales rose 0.7%.             
    Global stocks          were lifted by China's renewed offer
to work out a trade pact with Washington.              
    Canada is a major export of commodities, including oil, so
its economy could benefit from an improved outlook for global
    Oil prices were boosted by expectations major producers
would extend production cuts. U.S. crude oil futures        rose
0.2% to $58.69 a barrel.             
    At 9:17 a.m. (1417 GMT), the Canadian dollar          was
trading 0.1% higher at 1.3268 to the greenback, or 75.37 U.S.
cents. The currency traded in a range of 1.3255 to 1.3290.
    The gain for the loonie comes after Bank of Canada Governor
Stephen Poloz on Thursday doused expectations for an interest
rate cut as soon as next month, noting that the services sector
and housing "have been going pretty well."             
    Canada's housing market has turned the corner and prices
will increase modestly faster over the coming few years, a
Reuters poll of economists and property market analysts
predicted, but with no return to boom times any time soon.
    Chances of a rate cut in December have fallen to less than
10% from about 25% earlier this week, data from the overnight
index swaps market showed.           
    Still, the loonie was on track to fall 0.4% for the week.
    A strike at Canada's biggest railroad Canadian National
Railway Co         , entered its fourth day on Friday amid
ongoing talks. Economists say that a prolonged strike could
crimp Canada's economic growth.                         
    Canadian government bond prices edged lower across the yield
curve, with the two-year            down 1.5 Canadian cents to
yield 1.572% and the 10-year             falling 2 Canadian
cents to yield 1.480%.

 (Reporting by Fergal Smith; Editing by David Gregorio)