January 7, 2020 / 2:38 PM / 20 days ago

CANADA FX DEBT-Canadian dollar hits 1-week low as data shows lower exports

    * Canadian dollar weakens 0.3% against the greenback
    * Canada posts a trade deficit of C$1.09 billion in November
    * Price of U.S. oil falls 0.9%
    * Canadian bond prices rise across a flatter yield curve

    TORONTO, Jan 7 (Reuters) - The Canadian dollar weakened to a
one-week low against its U.S. counterpart on Tuesday, as oil
prices fell on reduced worries about Middle East tensions and
domestic data showed a decrease in both exports and imports.
    Canada posted a trade deficit of C$1.09 billion in November,
official data showed, as a strike at the country's biggest
railway temporarily slowed shipments nationwide and energy
exports declined.             
    Oil prices surrendered some gains made over the previous
days as investors reconsidered the likelihood of immediate
supply disruptions in the Middle East after the United States
killed a top Iranian military commander. U.S. crude oil futures
       were down 0.9% at $62.71 a barrel.             
    At 9:17 a.m. (1417 GMT), the Canadian dollar        was
trading 0.3% lower at 1.3000 to the greenback, or 76.92 U.S.
cents. The currency touched 1.3013, its weakest intraday level
since New Year's Eve, when it soared to a 14-month high at
1.2947.
    The decline for the loonie on Tuesday came as the U.S.
dollar        rallied against a basket of major currencies,
including making gains against safe haven currencies such as the
Japanese yen        and the Swiss franc       .                 
    Canada's jobs data for December is due on Friday, which
could help guide expectations for the Bank of Canada interest
rate outlook.
    The central bank left its benchmark interest rate on hold at
1.75% in 2019 even as some other major central banks, such as
the Federal Reserve and the European Central Bank, eased. Bank
of Canada Governor Stephen Poloz is due to speak on Thursday.
    Canadian government bond prices were higher across a flatter
yield curve, with the two-year            up 1.5 Canadian cents
to yield 1.632% and the 10-year             rising 14 Canadian
cents to yield 1.572%.

 (Reporting by Fergal Smith; editing by Jonathan Oatis and Nick
Zieminski)
  
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