February 7, 2019 / 3:00 PM / 2 years ago

CANADA FX DEBT-C$ hits one-week low as global growth concerns weigh

    * Canadian dollar falls 0.4 percent against the greenback
    * Price of U.S. oil falls 1 percent
    * Canadian bond prices rise across the yield curve

    TORONTO, Feb 7 (Reuters) - The Canadian dollar weakened to
its lowest in more than one week against the greenback on
Thursday, as fears of a global slowdown gripped investors and
ahead of domestic jobs data on Friday that could guide Bank of
Canada interest rate expectations.
    U.S. stocks were pressured by a slew of dismal quarterly
reports and a cut to the European Commission's forecasts for
economic growth.                         
    Canada is a major producer of commodities, including oil, so
its economy could be hurt by a slowdown in global growth.
    Oil prices fell after data showing a rise in U.S.
inventories weighed on sentiment already rattled by the global
economy. U.S. crude        prices were down 1 percent at $53.46
a barrel.             
    At 9:37 a.m. (1437 GMT), the Canadian dollar          was
trading 0.4 percent lower at 1.3265 to the greenback, or 75.39
U.S. cents. The currency touched its weakest level since Jan. 30
at 1.3280.
    Canada's employment report for January is due on Friday. On
Wednesday, Ivey Purchasing Managers Index (PMI) data showed a
declined in an employment measure that helped slow the expansion
of purchasing activity in Canada more than expected to hit a
four-month low in January.             
    The Bank of Canada said in January that low oil prices,
which have led to production cuts in Alberta, and a weak housing
market harmed the economy in the fourth quarter of 2018 and will
continue to do so in the first quarter of this year.
    Canadian government bond prices were higher across the yield
curve in sympathy with U.S. Treasuries. The two-year           
rose 8 Canadian cents to yield 1.771 percent and the 10-year
            climbed 41 Canadian cents to yield 1.876 percent.

 (Reporting by Fergal Smith; Editing by Bernadette Baum)
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