November 27, 2018 / 3:05 PM / 2 years ago

CANADA FX DEBT-C$ slips as global trade tensions worry investors

    * Canadian dollar dips 0.2 percent against the greenback
    * Price of U.S. oil rises 0.1 percent
    * Canadian bond prices trade higher across the yield curve

    TORONTO, Nov 27 (Reuters) - The Canadian dollar edged lower
against its U.S. counterpart on Tuesday as concern about world
trade tensions weighed on stocks and boosted the greenback.
    At 9:41 a.m. (1441 GMT), the Canadian dollar          was
trading 0.2 percent lower at 1.3277 to the greenback, or 75.32
U.S. cents. The currency, which last Tuesday touched its weakest
level in nearly five months at 1.3318, traded in a range of
1.3237 to 1.3281.
    The U.S. dollar        rose to its highest level in almost
two weeks against its major rivals, after President Donald Trump
said he would push ahead with tariffs on Chinese goods.
    U.S. stocks opened lower after Trump's comments dampened
hopes of resolving the ongoing trade spat between the two
economic giants at the upcoming G20 Summit.             
    Canada exports many commodities, including oil, and runs a
current account deficit, so its economy could be hurt if the
global flow of trade or capital slows.
    The price of oil was supported by expectations that oil
exporters would agree to cut output at an OPEC meeting next
week. U.S. crude        prices were up 0.1 percent at $51.67 a
    On Monday, a rebound in oil prices helped support the
loonie, but was offset by news that General Motors Co       
would close its plant in Oshawa, Ontario, east of Toronto.
    BMO Capital Markets estimated that the closure would reduce
Canadian gross domestic product by between 0.1 percent and 0.2
percent over a full year.
    Canada's gross domestic product data for the third quarter
is due on Friday.
    Canadian government bond prices were higher across the yield
curve in sympathy with U.S. Treasuries. The two-year           
rose 3 Canadian cents to yield 2.224 percent and the 10-year
            was up 10 Canadian cents to yield 2.342 percent.
    On Friday, the 10-year yield touched its lowest in more than
two months at 2.330 percent.

 (Reporting by Fergal Smith; Editing by Bernadette Baum)
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