* Canadian dollar at C$1.2724, or 78.59 U.S. cents
* Bond market closed in lieu of Remembrance Day
TORONTO, Nov 13 (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Monday, paring some of its recent gains despite higher oil prices, as uncertain prospects for a U.S. tax overhaul weighed on risk appetite. Uncertainty over a U.S. tax overhaul deal pushed world stock markets further away from recent record highs. Canada's commodity-linked currency tends to lose ground when investors become risk-averse. Foreign exchange investors also turned their attention to a central bank conference on Tuesday. At 9:55 a.m. EST (1455 GMT), the Canadian dollar was trading at C$1.2724 to the greenback, or 78.59 U.S. cents, down 0.3 percent. The currency traded in a range of C$1.2671 to C$1.2727. On Friday, it touched its strongest in more than two weeks at C$1.2666. Oil, one of Canada's major exports, was supported by Middle East tensions and record long bets by fund managers.
U.S. crude prices were up 0.30 percent at $56.91 a
barrel. But the Canadian dollar was unlikely to recapture its tight link with the price of oil even as the interest rate outlook settles, given that crude trades far removed from levels needed to affect investment in Canada's energy sector, economists and strategists said. Canada's bond market was closed on Monday in lieu of Remembrance Day. Canada's manufacturing sales data for September is due on Thursday and the October inflation report will be released on Friday. Economists expect the annual inflation rate to have cooled to 1.4 percent in October, which will likely give the Bank of Canada room to take its time raising interest rates after two back-to-back hikes earlier this year.
(Reporting by Fergal Smith editing by Jonathan Oatis)