CANADA FX DEBT-C$ weakens as investors cut risks
* C$ at C$1.0230 vs US$, or 97.70 U.S. cents
* Investors in risk-averse mood
* Bond prices rise
By Andrea Hopkins
TORONTO, Oct 18 (Reuters) - The Canadian dollar weakened slightly against its U.S. counterpart on Tuesday as investors moved to safer assets amid ongoing concerns about the European debt crisis and slower-than-expected Chinese growth.
World stocks stumbled and government bonds rose as the Chinese data and a warning on France's triple-A sovereign credit rating prompted investors to cut risks. [MKTS/GLOB]
Analysts said the Canadian dollar and other G7 currencies are likely to continue to weaken against the U.S. dollar as markets turn toward risk aversion again.
"All asset classes are taking cover this morning as the market prepares for disappointment on the European policy front," John Curran, senior vice president at CanadianForex, a commercial foreign exchange dealing firm, said in his morning research note.
"Poor U.S. economic prospects combined with ever-present European debt concerns will continue to weigh on the Canadian dollar as its growth/commodity currency status makes it susceptible to negative global growth news."
At 8:52 a.m. (1252 GMT), the Canadian dollar CAD=D3 stood at C$1.0230 to the U.S. dollar, or 97.70 U.S. cents, down slightly from Monday's North American session close at C$1.0221 against the U.S. dollar, or 97.84 U.S. cents.
With euro-zone woes as a backdrop all week ahead of the Oct. 23 summit of European leaders, the Canadian dollar will likely be under pressure in the next few sessions.
Canadian bond prices were higher across the curve with the risk-off mood. The two-year Canadian government bond CA2YT=RR rose 0.5 of a Canadian cent to yield 0.987 percent, while the 10-year bond CA10YT=RR climbed 13 Canadian cents to yield 2.275 percent.
(Editing by Chizu Nomiyama)
© Thomson Reuters 2016 All rights reserved.