November 12, 2019 / 9:12 PM / in 9 months

CANADA FX DEBT-C$ steadies near 1-month low, weighed by BoC's more dovish stance

 (Adds dealer quotes and details throughout, updates prices)
    * Canadian dollar trades near unchanged against greenback
    * Price of U.S. oil falls 0.1%
    * Loonie touches its weakest intraday since Oct. 11 at
    * 10-year yield exceeds 2-year yield for first time since
July 25

    By Fergal Smith
    TORONTO, Nov 12 (Reuters) - The Canadian dollar was little
changed against its U.S. counterpart on Tuesday, holding near a
one-month low it hit earlier in the day as the greenback broadly
climbed and investors adjusted to the Bank of Canada's more
dovish stance.
    The U.S. dollar        rose against a basket of major
currencies, although its gains stalled after U.S. President
Donald Trump in a speech offered no new details on the state of
the administration's trade war with China.             
    "The big dollar is catching a bit of a bid," said Michael
Goshko, corporate risk manager at Western Union Business
    "We did get some indication from the Bank of Canada at the
last meeting that it was likely to become more accommodative in
the meetings ahead, so that's also taking some of the starch out
of the Canadian dollar as well," Goshko said.
    The loonie has declined by as much as 1.3% since Oct. 30,
when Canada's central bank cut its economic growth forecasts and
expressed concern about global trade uncertainty.             
    Bank of Canada Governor Stephen Poloz is due to speak on
Thursday, which could help guide expectations for the interest
rate outlook.              
    At 3:24 p.m. (2024 GMT), the Canadian dollar          was
trading nearly unchanged at 1.3231 to the greenback, or 75.58
U.S. cents. The currency's strongest level of the session was
1.3217, while it touched its weakest since Oct. 11 at 1.3257.
    The price of oil, one of Canada's major exports, gave up its
earlier gains after Trump's speech. U.S. crude oil futures
       settled 0.1% lower at $56.80 a barrel.
    Canadian government bond prices were lower across a steeper
yield curve as trading resumed after a holiday on Monday. The
two-year            fell 2.5 Canadian cents to yield 1.598% and
the 10-year             was down 17 Canadian cents to yield
    It was the first time since July 25 that the 10-year yield
traded above the 2-year yield. Reversion of the yield curve to
upward sloping could reduce fears of an economic slowdown.

 (Reporting by Fergal Smith; Editing by Sandra Maler and Peter
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