CANADA FX DEBT-C$ hits 1-week low on concern trade deal will bypass Canada

 (Adds strategist quotes and details throughout; updates prices)
    * Canadian dollar weakens 0.5 percent against the greenback
    * Loonie touches a one-week low at 1.3026 to the greenback
    * Price of U.S. oil falls nearly 1 percent
    * Canadian bond prices move higher across flatter yield

    By Fergal Smith
    TORONTO, Sept 26 (Reuters) - The Canadian dollar weakened to
its lowest in more than a week against the greenback on
Wednesday, as the Federal Reserve hiked interest rates and
investors worried that Canada would be left out of a trade deal
with its NAFTA counterparts.
    Canadian Prime Minister Justin Trudeau shrugged off U.S.
pressure to quickly agree to a deal on the North American Free
Trade Agreement (NAFTA) and indicated it was possible the three
member nations might fail to conclude a new pact.             
    A Trump administration official said the text of a side deal
the United States has reached with Mexico was set to be
published on Friday.
    "The United States moving ahead without Canada shows that
Canada may be left out altogether," said Adam Button, a currency
analyst at ForexLive.
    "I believe that it is still a remote possibility, but it is
slightly higher than it was before this, and that's why the
Canadian dollar slumped."
    As the month-end deadline for the trade talks nears,
Canadian executives who hedge foreign exchange risk have been
changing their strategies so their companies can profit from any
possible swings in the Canadian dollar.             
    The U.S. dollar        rose against a basket of major
currencies after the Fed raised interest rates as expected for
the eighth time, flagged more rate hikes and signaled the end of
the "accommodative" policy era.                 
    At 4:09 p.m. (2009 GMT), the Canadian dollar          was
trading 0.5 percent lower at 1.3018 to the greenback, or 76.82
U.S. cents. The currency touched its weakest level since Sept.
18 at 1.3026.
    The price of oil, one of Canada's major exports, eased after
U.S. data showed a surprise build in domestic crude inventories.
U.S. crude oil futures        settled nearly 1 percent lower at
$71.57 a barrel.            
    Canadian government bond prices were higher across a flatter
yield curve in sympathy with U.S. Treasuries. The 10-year
            climbed 36 Canadian cents to yield 2.417 percent.
    On Tuesday, the 10-year yield touched its highest intraday
in more than four months at 2.472 percent.
    Bank of Canada Governor Stephen Poloz is due to speak on
Thursday, while Canadian gross domestic product data for July is
due on Friday.

 (Reporting by Fergal Smith; Editing by Jeffrey Benkoe and
Jonathan Oatis)