January 24, 2019 / 3:05 PM / 2 months ago

CANADA FX DEBT-C$ hits 2-week low as global trade uncertainty lingers

    * Canadian dollar dips 0.1 percent against the greenback
    * Loonie touches its weakest since Jan. 7 at 1.3375
    * Price of U.S. oil falls 0.1 percent
    * Bond prices rise across the yield curve

    TORONTO, Jan 24 (Reuters) - The Canadian dollar weakened to
its lowest in more than two weeks against its U.S. counterpart
on Thursday as optimism faded for a near-term resolution to a
trade dispute between the United States and China.
     The United States and China are a long way from resolving
trade issues, but there is a fair chance the two countries will
get to a trade deal, U.S. Commerce Secretary Wilbur Ross said.
            
    Canada exports many commodities, including oil, so its
economy could be hurt if the trade dispute drags on.
    U.S. crude        prices were down 0.1 percent at $52.59 a
barrel as concern over the global economy reasserted itself,
reversing earlier price gains made on the potential for U.S.
sanctions on OPEC member Venezuela.             
    At 9:41 a.m. EST (1441 GMT), the Canadian dollar         
was trading 0.1 percent lower at 1.3352 to the greenback, or
74.90 U.S. cents. The currency touched its weakest since Jan. 7
at 1.3375.
    The two-week low for the loonie comes after a string of weak
domestic data this week prompted some economists to project a
November contraction in Canada's economy.
    Chances of another Bank of Canada interest rate hike by the
summer have fallen to less than 30 percent from more than 50
percent at the end of last week. The central bank has hiked five
times since July 2017.               
    Canadian government bond prices were higher across the yield
curve in sympathy with U.S. Treasuries. The two-year           
rose 5 Canadian cents to yield 1.87 percent and the 10-year
            climbed 26 Canadian cents to yield 1.940 percent. 

 (Reporting by Fergal Smith; editing by Jonathan Oatis)
  
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