CANADA FX DEBT-C$ weakens with oil price as greenback rally restarts
* Canadian dollar at C$1.1374 or 87.92 U.S. cents * Bond prices lower across the maturity curve (Adds strategist's comment, updates prices to close) By Alastair Sharp TORONTO, Nov 10 (Reuters) - The Canadian dollar slipped against the greenback on Monday as oil prices fell and the U.S. dollar resumed its recent rally against a range of currencies. The loonie, as Canada's currency is colloquially known, had been falling hard recently against the U.S. dollar, but it jumped on Friday on a surprisingly robust domestic jobs report coupled with slightly weaker-than-expected U.S. employment numbers. It reverted to the downward trend again on Monday, however, ending the session at C$1.1374 to the greenback, or 87.92 U.S. cents, weaker than Friday's close of C$1.1333, or 88.24 U.S. cents. Greg Moore, senior currency strategist at Royal Bank of Canada, forecasts the loonie will drop to as low as C$1.18 to the greenback and said there is a risk it could fall even further given weak prices for oil, a major Canadian export. "What's changed from a fundamental point of view is this substantial move lower in oil prices, which, if it is in fact sustainable, does pose an even greater threat to the Canadian dollar against the U.S. dollar," Moore said. The price of oil has fallen steadily since mid-2014 due to excess supply and subdued demand, with the Canadian dollar following it lower. In the same period, the U.S. dollar has climbed versus most major currencies as more hawkish-looking U.S. central bankers have expressed increasing confidence in economic recovery. "We could be entering a period of rest here where several currencies and several asset classes have made really large moves and now it's time to catch your breath and rethink where things should be valued," said Camilla Sutton, chief currency strategist at Scotiabank. "But certainly that fall in oil prices is a material shift for the Canadian dollar," she said. Canadian government bond prices were lower across the maturity curve, with the two-year down 3.5 Canadian cents to yield 1.036 percent and the benchmark 10-year down 30 Canadian cents to yield 2.059 percent. (Editing by Peter Galloway)
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