CANADA FX DEBT-C$ ends down, but off 2-week low
(Adds strategist comment, details; updates prices to close) * Canadian dollar at C$1.2961, or 77.15 U.S. cents * Loonie touched weakest since June 3 at C$1.3086 * Bond prices lower across the maturity curve * 10-year yield touches lowest since Feb. 12 at 1.052 pct By Fergal Smith TORONTO, June 16 (Reuters) - The Canadian dollar ended lower against its U.S. counterpart on Thursday but bounced off its weakest levels in almost two weeks as markets gyrated globally with the shooting death of a British lawmaker who backed Britain remaining in the European Union. Sterling advanced and the greenback pulled back after British Member of Parliament Jo Cox was killed in the street in her constituency in northern England. Investors are broadly cautious ahead of the June 23 vote, with economists warning that a so-called Brexit could trigger financial market volatility and weaken the outlook for the global economy and commodity prices. "Money is already reducing exposure to risk, out of stocks worldwide, commodities are following suit, bonds are being hoovered up, pushing yields to unprecedented levels, and commodity currencies are getting crushed," said Michael Goshko, a corporate risk manager at Western Union Business Solutions. "The real question is how far the trend continues and how disorderly it becomes," he said. British support for leaving the bloc in a June 23 referendum has risen to 53 percent, a telephone poll showed on Thursday, the highest support recorded by the pollster for the "Leave" or "Brexit" campaign in more than three years. The Canadian dollar settled at C$1.2961 to the greenback, or 77.15 U.S. cents, weaker than Wednesday's close of C$1.2926, or 77.36 U.S. cents. It had touched its weakest since June 3 at C$1.3086 during the session, while its strongest level was C$1.2897. Oil prices slid 4 percent for a sixth straight fall and European shares hit a four-month low, weighing on Canada's risk-sensitive commodity-linked currency. Canadian growth is likely to be flat or slightly negative in the second quarter due to the impact of the Alberta wildfires before an outsized recovery takes hold in the third quarter, the Bank of Canada said on Wednesday. Foreign investors bought a net C$15.52 billion ($11.94 billion) in Canadian securities in April, the fourth straight month of relatively significant purchases, Statistics Canada said. Canadian government bond prices were mixed across the maturity curve, with the two-year price down 6 Canadian cents to yield 0.512 percent and the benchmark 10-year fell 25 Canadian cents to yield 1.107 percent. The 10-year yield hit its lowest since Feb. 12 at 1.052 percent. (Additional writing by Alastair Sharp; Editing by Diane Craft)
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