June 14, 2019 / 1:35 PM / 3 months ago

CANADA FX DEBT-C$ hits 1-week low as retail sales data boosts greenback

    * Canadian dollar falls 0.2% against the greenback
    * Loonie touches a one-week low at 1.3368
    * Canadian dollar is on track to fall 0.7% for the week
    * Canadian bond prices dip across the yield curve

    TORONTO, June 14 (Reuters) - The Canadian dollar fell to a
one-week low against its U.S. counterpart on Friday as U.S. data
suggesting a pick-up in consumer spending boosted the greenback.
    At 9:19 a.m. (1319 GMT), the Canadian dollar          was
trading 0.2% lower at 1.3356 to the greenback, or 74.87 U.S.
cents. The currency, which was on track to fall 0.7% for the
week, touched its weakest intraday level since June 7 at 1.3368.
    The price of oil, one of Canada's major exports, was also on
track for a weekly loss on fears that trade disputes will dent
global oil demand, though attacks on two oil tankers in the Gulf
of Oman this week gave prices a floor.             
    U.S. crude oil futures        were up 0.3% at $52.45 a
barrel, while the U.S. dollar        rose against a basket of
major currencies after encouraging U.S. retail sales data for
May eased fears that the U.S. economy is slowing sharply, ahead
of the Federal Reserve's meeting next week.              
    Money markets expect the Bank of Canada to cut interest
rates less than the Federal Reserve.                     
    Still, Canada exports many commodities and runs a current
account deficit, so its economy could be hurt if a trade war
between the United States and China slows the global flow of
trade or capital. 
    Global stocks          fell on Friday, pressured by more
signs of slowdown in Chinese industry and as the long-feared hit
to global growth from U.S. President Donald Trump's trade war
crystallized in slashed sales forecast from chipmaker Broadcom.
                   
    Canadian government bond prices were lower across the yield
curve in sympathy with U.S. Treasuries, with the two-year
           down 2 Canadian cents to yield 1.399% and the 10-year
            falling 12 Canadian cents to yield 1.462%.
    Earlier in the session, the 10-year yield fell to 1.424%,
which was near last week's two-year low of 1.410%.

 (Reporting by Fergal Smith
Editing by Nick Zieminski)
  
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