July 18, 2019 / 1:50 PM / 3 months ago

CANADA FX DEBT-C$ dips to near one-week low as oil prices decline

    * Canadian dollar weakens 0.2% against the greenback
    * Canadian home prices rise 0.8% in June from May
    * Price of U.S. oil falls 0.3%
    * Canada's 10-year yield hits a near two-week low at 1.505%

    TORONTO, July 18 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Thursday, approaching the
previous day's one-week low, as oil prices fell and domestic
data showed a smaller than usual rise in June home prices.
    Canadian home prices rose 0.8% in June from the prior month,
thanks to a seasonal boost, but the increase was lower than the
month's 21-year average, data showed.             
    A separate report from ADP, a human resources solutions
company, showed that Canada added 30,400 jobs in June, as hiring
rebounded after a sharp decline in May.             
    Meanwhile, the price of oil, one of Canada's major exports,
fell even as Iran said it had seized a foreign oil tanker in the
Gulf. U.S. crude oil futures        were down 0.3% at $56.59 a
barrel,                 
    At 9:22 a.m. (1322 GMT), the Canadian dollar          was
trading 0.2% lower at 1.3073 to the greenback, or 76.49 U.S.
cents. The currency, which touched on Wednesday a one-week low
at 1.3093, traded in a range of 1.3042 to 1.3075.
    Still, the loonie has been the top performing G10 currency
this year, rising 4.4% against the U.S. dollar. It has been
boosted in recent weeks by expected divergence in interest rate
decisions between the Bank of Canada and the Federal Reserve.
                    
    The Bank of Canada made clear last week it had no intention
of easing monetary policy, while the Fed is expected to cut
interest rates at the end of this month.     
    Canadian government bond prices were mixed across a steeper
yield curve, with the two-year            up 0.8 Canadian cents
to yield 1.481% and the 10-year             declining 9 Canadian
cents to yield 1.537%.
    Earlier in the session, the 10-year yield touched its lowest
since July 5 at 1.505%.
    Canada's retail sales report for May is due on Friday.     

 (Reporting by Fergal Smith
Editing by Susan Thomas)
  
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