August 15, 2018 / 1:40 PM / 3 months ago

CANADA FX DEBT-C$ weakens as oil prices and stocks slide

    * Canadian dollar weakens 0.4 percent
    * Price of U.S. oil falls 1.1 percent
    * Bond prices higher across a flatter yield curve
    * 10-year yield touches a near 3-week low

    TORONTO, Aug 15 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Wednesday as oil prices fell and
a 13-month high for the greenback pressured emerging markets and
global stocks.
    Stocks have been volatile in recent days due to the prospect
of an economic crisis in Turkey spreading to other emerging
market countries, particularly those that borrow in U.S.
dollars.
    The greenback        rose against a basket of major
currencies as data showed U.S. retail sales grew more than
forecast in July.             
    Canada exports many commodities and runs a current account
deficit so its economy could be hurt if the flow of trade or
capital slows.    
     The price of oil, one of Canada's major exports, was
pressured by a weakening global economic growth outlook and data
showing rising U.S. crude inventories.             
    U.S. crude oil futures        were down 1.1 percent at
$66.31 a barrel.      
    At 9:21 a.m. EDT (1321 GMT), the Canadian dollar         
was trading 0.4 percent lower at C$1.3117 to the greenback, or
76.24 U.S. cents. The currency, which touched a near 3-week low
of C$1.3179 on Monday, traded in a range of C$1.3051 to        
C$1.3121.
    Resales of Canadian homes rose 1.9 percent in July from
June, notching the third straight monthly rise but remaining
below the highs seen in recent years, the Canadian Real Estate
Association said.             
    Canada's manufacturing sales data for June is due on
Thursday and the July inflation report on Friday.
    Canadian government bond prices were higher across a flatter
yield curve in sympathy with U.S. Treasuries as government bonds
benefited from safe-haven demand.
    The 10-year             rose 29 Canadian cents to yield
2.286 percent. Its yield touched its lowest since July 27 at
2.279 percent.

 (Reporting by Fergal Smith
Editing by Susan Thomas)
  
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