CANADA FX DEBT-Canadian dollar posts 3-month high but gains capped by profit taking - NewsBreak

(Adds strategist quote and details throughout; updates prices) * Canadian dollar strengthens 0.1% against greenback * Touches strongest level since July 6 at 1.2312 * Price of U.S. oil settles 0.6% higher * Canadian bond yields rise across much of a steeper curve By Fergal Smith TORONTO, Oct 19 (Reuters) - The Canadian dollar rose to its highest level in more than three months against its broadly weaker U.S. counterpart on Tuesday, before giving up some gains as investors took profits ahead of a key Canadian inflation report on Wednesday. The loonie was trading 0.1% higher at 1.2363 to the greenback, or 80.89 U.S. cents, after touching its strongest intraday level since July 6 at 1.2312. "Everything is aligned for Canadian dollar strength at the moment but today's price action reflects a bit of profit taking," said Adam Button, chief currency analyst at ForexLive. Wall Street rose as investors appeared to bet on solid quarterly reports, while the safe-haven U.S. dollar fell against a b