CANADA FX DEBT-C$ hits 1-week low as oil falls after OPEC meeting
* Canadian dollar at C$1.3108, or 76.29 U.S. cents * Loonie touched its weakest since May 24 at C$1.3144 * Bond prices higher across the maturity curve TORONTO, June 2 (Reuters) - The Canadian dollar weakened to a one-week low against its U.S. counterpart on Thursday as oil fell after a meeting of major oil producers, while investors braced for key economic data from Canada and the U.S. at the end of the week. The Organization of the Petroleum Exporting Countries ended its meeting without any apparent change in its crude production policy. U.S. crude prices were down 1.37 percent to $48.34 a barrel. The number of Americans applying for unemployment benefits fell unexpectedly last week. The report signaled a tightening in the labor market but falls outside the survey period of the U.S. employment report for May due on Friday. Bank of Canada Deputy Governor Lawrence Schembri will give a presentation in Nova Scotia on the outlook for the Canadian economy. Last week, the central bank said that the wildfires in Alberta will shave more than 1 percent off second-quarter growth. The presentation will be published on the central bank's website at 11:30 a.m. EDT (1530 GMT). At 9:53 a.m. EDT (1353 GMT), the Canadian dollar was trading at C$1.3108 to the greenback, or 76.29 U.S. cents, weaker than Wednesday's close of C$1.3067, or 76.53 U.S. cents. The currency's strongest level of the session was C$1.3055, while it touched its weakest since May 24 at C$1.3144. The loonie is expected to weaken in the near-term on prospects of slower economic growth and a U.S. interest rate hike this month or next, a Reuters poll found, but an eventual oil price recovery is set to bolster the currency over the longer term. Canadian government bond prices were higher across the maturity curve in sympathy with U.S. Treasuries. The two-year price rose 4 Canadian cents to yield 0.57 percent and the benchmark 10-year climbed 34 Canadian cents to yield 1.266 percent. The 10-year yield hit its lowest in nearly three weeks at 1.266 percent. Canadian trade data is due on Friday. Economists expect the trade deficit narrowed in April and will look for a pickup in exports, which is key to the Bank of Canada's outlook. (Reporting by Fergal Smith; Editing by Meredith Mazzilli)
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