* Disappointing China trade data revive global demand
concerns
* Falling oil, metal prices weigh on commodity currencies
* ECB seen likely to ease but investors ponder extent
* BoE's Carney says Brexit would hurt U.K. economy
(Updates market action)
By Richard Leong
NEW YORK, March 8 (Reuters) - News of deterioration in
China's trade balance stoked safe-haven demand for the yen on
Tuesday as investors shed holdings of stocks and other risky
investments on renewed concerns about a slowing global economy.
Lower oil and industrial metal prices, which had reached
multi-month highs in recent days, added pressure on the Canadian
and Australian dollars and other commodity-sensitive currencies.
China's exports slumped 25.4 percent in February from a year
earlier, the steepest drop since May 2009, while imports dropped
13.8 percent for a 16th consecutive monthly fall.
"If China is in trouble, we are seeing a flight to safety
here," said Stan Shipley, strategist at Evercore ISI in New
York.
Investors prefer the yen and Swiss franc in times of market
volatility and economic worries.
The dollar was down 0.8 percent at 112.56 yen JPY= after
hitting a one-week low of 112.41. The euro slipped 0.8 percent
at 123.92 yen EURJPY= .
The Swiss franc gained before fading in U.S. trading. It was
last down 0.1 percent against the greenback at 0.9956 franc
CHF= and flat at 1.0964 franc per euro EURCHF= .
The Australian and Canadian dollars pulled away from
multi-month highs touched on a rally in commodity prices.
The Aussie declined 0.2 percent to $0.7455 AUD=D4 after
reaching a high not seen since July of $0.7486 on Monday.
The Canadian dollar weakened 0.9 percent to C$1.3405 per
U.S. dollar. It had strengthened to C$1.3262 CAD=D4 on Monday,
its highest since November.
Benchmark Brent crude oil futures LCOc1 hit a three-month
high of $41.48 a barrel before turning lower, and were last down
3 percent at $39.61. O/R
Copper retreated further from last week's four-month highs,
and closed down 2.6 percent at $4,868.00 a tonne CMCU3 on the
London Metal Exchange.
The euro's move was limited ahead of a European Central Bank
policy meeting on Thursday, when traders widely expect the bank
to embark on more stimulus to support a wobbly euro zone
economy. ECBWATCH
Investors are uncertain how far it will go. Euro bears are
cautious about positioning for bold action, having been badly
burned previously when the ECB disappointed by choosing to take
more modest easing steps. GVD/EUR
The euro was down 0.05 percent at $1.1005 EUR= , holding in
a tight range against the dollar.
Sterling fell 0.4 percent against the dollar to $1.4215
GBP=D4 after Bank of England Governor Mark Carney warned a
potential exit by Britain from the European Union would hurt the
economy and prompt some banks to leave London.