CANADA FX DEBT-C$ at more than 5-year low as oil falls

* Canadian dollar at C$1.1407 or 87.67 U.S. cents
    * Bond prices higher across the maturity curve

    By Leah Schnurr
    OTTAWA, Nov 4 (Reuters) - The Canadian dollar fell to a more
than five-year low against the greenback on Tuesday, breaking
through the C$1.14 level as oil prices slumped and the European
Commission cut its growth forecasts.
    Domestic data that showed Canada had posted an unexpected
trade surplus in September helped the loonie cut some of its
declines as it pulled back from a session low touched just
before the figures were released. 
    Still, the Canadian dollar was hit hard by a sharp drop in
oil prices after Saudi Arabia cut sales prices to the United
States. U.S. crude was down $1.56 at $77.22 a barrel.
    It's "the general consensus from the market that Canada is
linked to oil and oil has been tumbling, so that's what's led to
the decline in the value of the loonie," said Scott Smith,
senior market analyst at Cambridge Mercantile Group in Calgary.
    Risk appetite in the markets was also dampened after the
European Commission cut its forecasts for the eurozone's economy
and said the region would need another year to reach even a
modest level of economic growth. 
    The Canadian dollar was at C$1.1407 to the
greenback, or 87.67 U.S. cents, weaker than Monday's close of
C$1.1357, or 88.05 U.S. cents.
    The currency touched a session low of C$1.1429 in morning
trade, its lowest level since July 2009.
    The loonie could fall as far as the C$1.16 area in the short
to medium term if oil prices continue to decline and economic
figures from the United States look supportive, Smith said.
    "I don't see there being much in the way to stem the
loonie's decline, other than natural over-extension," he said.
    Canadian government bond prices were higher across the
maturity curve, with the two-year up 1-1/2 Canadian
cents to yield 0.985 percent and the benchmark 10-year
 up 5 Canadian cents to yield 2.038 percent.

 (Editing by Lisa Von Ahn)