* Canadian dollar rises 0.2% against the greenback
* Loonie trades in a range of 1.3156 to 1.3212
* Price of U.S. oil increases 0.4%
* Canadian bond yields ease across much of a flatter curve
TORONTO, Oct 27 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Tuesday as stocks and oil prices rose, with the currency rebounding from a 10-day low the day before when a wave of risk aversion swept global markets.
Wall Street's main indexes were set to bounce following the benchmark S&P 500's worst day in a month as investors parsed through a deluge of corporate earnings, while bracing for volatility ahead of Election Day.
Canada runs a current account deficit and is a major producer of commodities, including oil, so the loonie tends to be sensitive to investor risk appetite.
U.S. crude oil futures
The Canadian dollar
The Bank of Canada is due to make an interest rate decision and update its economic outlook on Wednesday. The central bank has said it will leave rates at a record low of 0.25% until its 2% inflation target is achieved sustainably, which it does not expect for at least two years.
Canadian government bond yields were lower across much of a
flatter curve in sympathy with U.S. Treasuries. The 10-year
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