November 29, 2019 / 8:51 PM / 7 months ago

CANADA FX DEBT-C$ posts November decline as data shows slower economic growth

 (Adds details on activity; updates prices)
    * Canadian dollar trades near flat against the greenback
    * Loonie falls 0.9% in November
    * Price of U.S. oil decreases by 4.6%
    * Canadian bond prices rise across the yield curve

    By Fergal Smith
    TORONTO, Nov 29 (Reuters) - The Canadian dollar was little
changed against the greenback on Friday, posting a decline for
the month as investors worried about U.S.-China tensions and
data showed that Canada's economic growth slowed as expected in
the third quarter.
    At 3:31 p.m. (2031 GMT), the Canadian dollar          was
trading nearly unchanged at 1.3279 to the greenback, or 75.31
U.S. cents. The currency traded in a range of 1.3272 to 1.3314.
    For the month, the loonie was down 0.9% after it was
pressured by a more dovish stance from the Bank of Canada.
    Ahead of the central bank's Dec. 4 interest rate decision,
official data showed that the Canadian economy expanded at an
annualized rate of 1.3% in the third quarter on higher business
investment and increased household spending. That was slower
than the 3.5% pace in the previous quarter but was close to
analysts' expectations.             
    "The headlines are bang on expectations but below the
surface there is plenty to be optimistic about," said Adam
Button, chief currency analyst at ForexLive. "If anything, the
GDP data makes it less likely that the Bank of Canada will cut
rates or signal that it will cut rates in the coming months."
    Money markets see about a 40% chance that the central bank
would cut by March.               
     Canadian Prime Minister Justin Trudeau said a little more
work needed to be done on a new continental trade deal which has
run into opposition from some U.S. Democrats over labor and
environmental provisions.             
    Canada sends about 75% of its exports to the United States,
including oil.
    Oil slumped and Wall Street's major indexes fell as
U.S.-China discord over Hong Kong fueled investor anxiety about
trade talks.                         
    U.S. crude oil futures        were down 4.6% at $55.42 a
    Canadian government bond prices were higher across the yield
curve, with the two-year            up 2 Canadian cents to yield
1.58% and the 10-year             rising 11 Canadian cents to
yield 1.456%.

 (Reporting by Fergal Smith
Editing by Marguerita Choy and Lisa Shumaker)
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