CORRECTED-CANADA FX DEBT-C$ weakest since Dec as export data disappoints

Tue Jan 7, 2014 12:06pm EST
 
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(Correct in bullet and last paragraph to show bond yields lower, not higher, across curve)

* Canadian dollar at C$1.0711, or 93.36 U.S. cents

* Trade deficit widens in November, October data revised lower

* Bond yields slightly lower across curve

By Alastair Sharp

TORONTO, Jan 7 (Reuters) - The Canadian dollar hit a one-week low against its U.S. counterpart on Tuesday after Canada posted a much-larger- than-expected trade deficit, knocking market hopes that the beleaguered export sector might be starting to recover.

The November deficit and a sharp downward revision to October's numbers knocked the wind from a nascent growth spurt for the Canadian economy.

"There was some hope late last year that exports showed some pick-up, especially in September, but with the revision to October and again the weaker number in November, it showed that it was probably just one-off strength in September," said Charles St-Arnaud, Canadian economist and currency strategist at Nomura Securities International in New York.

"It doesn't provide positive momentum going into this year," he added.   Continued...