November 13, 2019 / 2:34 PM / a month ago

CANADA FX DEBT-Canadian dollar hits 1-month low as trade deal doubts weigh

    * Canadian dollar falls 0.1% against the greenback
    * Loonie hits its weakest since Oct. 11 at 1.3268
    * Price of U.S. oil decreases 0.8%
    * Canadian bond prices rise across a flatter yield curve

    TORONTO, Nov 13 (Reuters) - The Canadian dollar weakened to
a one-month low against its U.S. counterpart on Wednesday,
adding to its decline since the Bank of Canada shifted to a more
dovish stance as investors became more pessimistic about global
trade conflicts.
    Global shares          fell after U.S. President Donald
Trump threatened to "substantially" increase tariffs if China
failed to agree a trade deal, and he also took a swipe at
European Union trade policies.             
    Canada is a major exporter of commodities, including oil, so
its economy could be hurt by a more uncertain outlook for global
trade.
    Oil prices fell as fading prospects for a trade deal between
the United States and China weighed on the outlook for the
global economy and energy demand. U.S. crude oil futures       
were down 0.8% at $56.33 a barrel.             
    At 9:06 a.m. (1406 GMT), the Canadian dollar          was
trading 0.1% lower at 1.3253 to the greenback, or 75.45 U.S.
cents. The currency's strongest level of the session was 1.3230,
while it touched its weakest since Oct. 11 at 1.3268.
    The loonie has declined by as much as 1.5% since Oct. 30,
when the Bank of Canada cut its economic growth forecasts and
expressed concern about global trade uncertainty.             
    Bank of Canada Governor Stephen Poloz is due to speak on
Thursday, which could help guide expectations for the interest
rate outlook. Money markets see about a 25% chance of a rate cut
next month.           
    Canadian government bond prices were higher across a flatter
yield curve, outperforming U.S. Treasuries after data showed
U.S. consumer prices rebounded more than expected in October.
    The two-year            rose 6.5 Canadian cents to yield
1.57% and the 10-year             was up 60 Canadian cents to
yield 1.545%.

 (Reporting by Fergal Smith
Editing by Nick Zieminski)
  
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