November 14, 2019 / 2:54 PM / 25 days ago

CANADA FX DEBT-C$ hits 1-month low as investors fret about global economy

    * Canadian dollar weakens 0.1% against greenback
    * Loonie touches its weakest since Oct. 11 at 1.3270
    * Canada's new housing price index rises 0.2% in September 
    * Canada's 10-year yield hits a 10-day low at 1.496%

    TORONTO, Nov 14 (Reuters) - The Canadian dollar weakened to
a one-month low against its U.S. counterpart on Thursday as a
speech by Bank of Canada Governor Stephen Poloz loomed and
investors grew more nervous about a global economic slowdown.
    World stocks          fell as Chinese economic data slowed
in October and Germany only narrowly avoided a recession in the
third quarter, adding to worries about the global growth fallout
from the U.S.-China trade war.             
    Canada is a major exporter of commodities, including oil, so
its economy could be hurt by a slowdown in global growth.
    Last month, the Bank of Canada cut its global growth
forecasts as it left its benchmark interest rate on hold at
1.75%.             
    Poloz is due to speak on the fourth industrial revolution at
the Federal Reserve Bank of San Francisco. Canada's central bank
will publish the governor's text at 9:45 p.m. ET (0245 GMT).
    Money markets see chances of an interest rate cut next month
at about 20%.           
    At 9:18 a.m. (1418 GMT), the Canadian dollar          was
trading 0.1% lower at 1.3262 to the greenback, or 75.40 U.S.
cents. The currency hit its weakest intraday level since Oct. 11
at 1.3270.
    The loonie weakened despite higher oil prices and domestic
data showing the largest increase in new home prices in two
years.
    The new housing price index rose 0.2% in September,
Statistics Canada said.             
    U.S. crude oil futures        were up 0.7% at $57.52 a
barrel after industry data showed a surprise drop in U.S. crude
inventories.                  
    Canadian government bond prices were higher across a flatter
yield curve in sympathy with U.S. Treasuries. The two-year
           rose 6.5 Canadian cents to yield 1.542% and the
10-year             was up 46 Canadian cents to yield 1.501%.
    The 10-year yield touched its lowest intraday since Nov. 4
at 1.496%.
    The leader of Canada's opposition New Democratic Party
(NDP), Jagmeet Singh, on Wednesday threatened not to back Prime
Minister Justin Trudeau's minority government unless it commits
to tackling some of his policy concerns, including a national
plan to pay for prescription drugs.                 

 (Reporting by Fergal Smith; editing by Jonathan Oatis)
  
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