August 20, 2019 / 2:14 PM / a month ago

CORRECTED-CANADA FX DEBT-Loonie hits a 2-month low as oil prices, risk appetite fall

 (Changes the price change of oil in bullets from 0.3% to 1.5%)
    * Canadian dollar falls 0.1% against the greenback
    * Loonie touches its lowest point since June 19
    * U.S. oil prices are down 1.5%
    * Bond prices move higher across the maturity curve

    By Levent Uslu
    TORONTO, Aug 20 (Reuters) - The Canadian dollar weakened to
a two-month low against its U.S. counterpart on Tuesday as
investor appetite for risk eased and oil prices decreased.
     U.S. stocks opened slightly lower as investors paused after
a three-day run driven by hopes that major economies would act
to counter a global economic downturn.
    Oil prices edged lower on Tuesday on persisting concerns
over demand. U.S. crude oil futures        were down 1.5% at
$55.38 a barrel.             
    Canada exports many commodities, including oil, so its
currency tends to move according to the signal that stocks send
about the outlook for the global economy.
    At 9:40 a.m. (1340 GMT), the Canadian dollar          was
trading 0.1% lower at 1.3340 to the greenback, or 74.96 U.S.
cents. The currency touched its weakest intraday level since
June 19 at 1.3346.
    The fall for the loonie came as Canadian factory sales
decreased by 1.2% in June from May on lower petroleum and coal
product sales, domestic data showed, although it was less than
forecast. Analysts surveyed by Reuters had forecast a 1.7%
decrease.             
    Canadian government bond prices were higher across the yield
 curve in sympathy with U.S. Treasuries. The two-year           
rose 7 Canadian cents to yield 1.322% and the benchmark 10-year
            was up 58 Canadian cents to yield 1.128%.

 (Reporting by Levent Uslu; editing by Jonathan Oatis)
  
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