September 12, 2019 / 1:53 PM / 5 days ago

CANADA FX DEBT-Loonie hits near 1-week low as oil prices fall

    * Canadian dollar falls 0.1% against the greenback
    * Loonie touches a six-day low at 1.3219
    * Canadian new home prices fall 0.1% in July
    * Canadian bond prices rise across a flatter yield curve

    TORONTO, Sept 12 (Reuters) - The Canadian dollar weakened to
a six-day low against its U.S. counterpart on Thursday as oil
prices fell and as the greenback broadly climbed after the
European Central Bank announced measures to boost the region's
economy.
    At 9:38 a.m. (1338 GMT), the Canadian dollar          was
trading 0.1% lower at 1.3204 to the greenback, or 75.73 U.S.
cents. The currency touched its weakest since last Friday at
1.3219.
    The loonie edged lower even as U.S. President Donald Trump
said the United States would delay scheduled tariff hikes on
billions worth of Chinese imports, boosting stocks on Wall
Street.             
    Canada exports many commodities, including oil, so its
economy could benefit from a cooling in global trade tensions. 
    Oil prices declined after a meeting of the OPEC+ alliance
yielded no decision on deepening supply cuts but focused instead
on bringing Nigerian and Iraqi output down to their agreed
quotas.             
    U.S. crude oil futures        were down 2.3% at $54.46 a
barrel, while the U.S. dollar        climbed against a basket of
major currencies after the euro was pressured by ECB stimulus
measures, including the unexpected relaunch of a quantitative
easing program.                     
    Meanwhile, data from Statistics Canada showed that new home
prices fell 0.1% in July. Prices have been flat or falling since
August 2018.              
    Canadian government bond prices were higher across a flatter
yield curve in sympathy with U.S. Treasuries. The two-year
           rose 8 Canadian cents to yield 1.546% and the 10-year
            was up 55 Canadian cents to yield 1.367%.
    On Wednesday, the 10-year yield posted its highest intraday
level since Aug. 1 at 1.442%.

 (Reporting by Fergal Smith
Editing by Nick Zieminski)
  
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