CANADA FX DEBT-C$ falls to six-week low against resilient greenback
(Adds further weakening of C$, analyst comment) * Canadian dollar at C$1.3332, or 75.01 U.S. cents * Bond prices climb across the maturity curve By Fergal Smith TORONTO, Nov 13 (Reuters) - The Canadian dollar tumbled to a six-week low against the U.S. dollar on Friday, pressured by a fresh 2-1/2-month low for crude oil and broader gains for the greenback despite softer-than-anticipated U.S. retail sales data. "The price action is more or less a reflection on what is going on in crude markets," said Bipan Rai, director of foreign exchange strategy at CIBC World Markets, adding that a close above C$1.3354 to the U.S. dollar would open the door to levels last seen in September, when the currency weakened to an 11-year low. On the disappointing U.S. retail sales data, Rai said "it wasn't weak enough to really change the market's mind that the Fed is moving next month." At 1:00 p.m. (1800 GMT), the Canadian dollar was trading at C$1.3332 to the greenback, or 75.01 U.S. cents, weaker than the Bank of Canada's official close on Thursday of C$1.3282, or 75.29 U.S. cents. The currency's strongest level of the session was C$1.3267, while its weakest was C$1.3350. U.S. retail sales rose just 0.1 percent in October, below analyst expectations for a 0.3 percent gain. The International Energy Agency added to concerns about oversupply in the oil market, saying in a monthly report that stockpiles are at a record 3 billion barrels. Comments by Bank of Canada Senior Deputy Governor Carolyn Wilkins were not seen as having moved the market. In a speech in Toronto, she said the current inflation-targeting framework is working well and "the bar for change is high." U.S. crude prices were down 3.4 percent to $40.31 a barrel, while Brent crude lost 0.9 percent to $43.66. Canada is a major oil producer and weaker oil prices tend to reduce the country's terms of trade and its economic outlook. Canadian government bond prices were higher across the maturity curve, supported by the disappointing U.S. data and weakness in crude oil, but also the sell-off in stocks. The two-year price was up 6 Canadian cents to yield 0.618 percent and the benchmark 10-year rose 33 Canadian cents to yield 1.664 percent. The Canada-U.S. two-year bond spread was -24.1 basis points, trading 1.1 basis points wider, while the 10-year spread was little changed at -62 basis points. (Editing by Bernadette Baum and James Dalgleish)
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