TORONTO (Reuters) - The Canadian dollar was little changed against its U.S. counterpart on Thursday, holding near an earlier one-month low as a speech by Bank of Canada Governor Stephen Poloz loomed and investors grew more nervous about a global economic slowdown.
World stocks .WORLD fell as Chinese economic data slowed in October and Germany only narrowly avoided a recession in the third quarter, adding to worries about the global growth fallout from the U.S.-China trade war.
Canada is a major exporter of commodities, including oil, so its economy could be hurt by a slowdown in global growth.
“It certainly feels like a combination of macro risks and concerns that are weighing on the Canadian dollar,” said Bipan Rai, North America head, FX strategy at CIBC Capital Markets. “As long you have that trade-related uncertainty, there is going to be some uncertainty with respect to the Canadian dollar.”
Last month, the Bank of Canada expressed concern about global trade uncertainty as it cut its growth forecasts and left its benchmark interest rate on hold at 1.75%.
Poloz is due to speak on the fourth industrial revolution at the Federal Reserve Bank of San Francisco on Thursday night. Canada’s central bank will publish the governor’s text at 9:45 p.m. EST (0245 GMT Friday).
Money markets see chances of an interest rate cut next month at about 20%. BOCWATCH
At 3:41 p.m. (2041 GMT), the Canadian dollar CAD=D4 was trading nearly unchanged at 1.3249 to the greenback, or 75.48 U.S. cents. The currency hit its weakest intraday level since Oct. 11 at 1.3270.
U.S. crude oil futures CLc1 settled 0.6% lower at $56.77 a barrel, pressured by a build in domestic inventories and record production.
Canada’s new housing price index rose 0.2% in September, the largest increase in two years, data from Statistics Canada showed.
Canadian government bond prices were higher across a flatter yield curve in sympathy with U.S. Treasuries. The two-year CA2YT=RR rose 8 Canadian cents to yield 1.534% and the 10-year CA10YT=RR was up 72 Canadian cents to yield 1.473%.
The 10-year yield touched its lowest intraday level since Nov. 4 at 1.465%.
Reporting by Fergal Smith; Editing by Jonathan Oatis and Peter Cooney