4 Min Read
* C$ ends at C$1.0635 to the US$
* Canadian data shows signs of growth
* Bond prices higher across the curve (Recasts to close)
By Frank Pingue
TORONTO, Nov 19 (Reuters) - Canada's dollar skidded on Thursday to its weakest against the U.S. currency in more than a week and ended down for a third straight session as key commodity prices slipped and investors curbed their appetite for risk.
Pullback in the Canadian dollar came alongside a slide in oil prices on concerns about energy demand, and a drop in gold prices from a record high hit on Wednesday. [O/R] [GOL/]. Oil and gold are two of Canada's main exports.
"Generally when we've seen this move back to risk aversion it hasn't lasted long, just a session or two," said Camilla Sutton, currency strategist at Scotia Capital. "It could very well carry into tomorrow but I suspect it's really a temporary correction in the broader trend."
The Canadian dollar ended the session at C$1.0635 to the U.S. dollar, or 94.03 U.S. cents, down from C$1.0545 to the U.S. dollar, or 94.83 U.S. cents, at Wednesday's close.
Earlier it slipped to C$1.0690 to the U.S. dollar, or 93.55 U.S. cents, its lowest since Nov. 9.
Investors pulled back on some of their riskier investments after Brazil's latest attempt to curb foreign inflows into its soaring currency fanned fears that some Asian nations may slap controls on capital flows. [ID:nN18128104]
Also weighing on the Canadian dollar was nagging uncertainty over the global economy's future and a move by some traders to lock in gains on the still relatively strong currency before year end.
Sutton said the Canadian dollar stands to build on this year's torrid climb until global central banks stop their rhetoric of supporting economic growth at almost any cost.
Canada's currency is about 23 percent stronger than a four-year low touched in March, a gain that some experts insist opens the door to sudden bouts of selling whenever a hint of gloomy news arises.
BOND PRICES HIGHER
Canadian bond prices ended up across the curve as the slide in North American equities triggered buying interest in more secure assets like government debt.
The rally in bond prices followed U.S. data that showed the number of workers filing new applications for jobless insurance was unchanged last week, but the four-week moving average of claims dropped to its lowest in almost a year. [ID:nN18123033]
The S&P/TSX composite index .GSPTSE slipped 0.45 percent, while the Dow Jones industrial average fell 0.9 percent.
The two-year Canada bond rose 9 Canadian cents to C$99.97 to yield 1.268 percent, while the 10-year bond rose 27 Canadian cents to C$102.93 to yield 3.387 percent.
Canadian bonds outperformed U.S. Treasuries across much of the curve. The Canadian 10-year yield was 4.5 basis points above its U.S. counterpart, compared with 5.2 basis points on Wednesday. (Editing by Frank McGurty)