CANADA FX DEBT-C$ at weakest in a month as oil falls

Published 2016-09-13, 09:05 a/m
CANADA FX DEBT-C$ at weakest in a month as oil falls
USD/CAD
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LCO
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CL
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CA2YT=RR
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CA10YT=RR
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* Canadian dollar at C$1.3155, or 76.02 U.S. cents

* Bond prices mixed across the maturity curve

TORONTO, Sept 13 (Reuters) - The Canadian dollar touched its weakest level in more than a month against its U.S. counterpart on Tuesday, as a gloomy outlook for oil demand growth weighed on crude prices.

At 8:46 a.m. EDT (1246 GMT), the commodity-linked Canadian dollar CAD=D4 was trading at C$1.3155 to the greenback, or 76.02 U.S. cents, much weaker than the Bank of Canada's official close on Monday of C$1.3049, or 76.63 U.S. cents.

Oil fell more than 2 percent after the International Energy Agency (IEA) said a sharp slowdown in global oil demand growth, coupled with ballooning inventories and rising supply, means the crude market will be oversupplied at least through the first six months of 2017. view marked a change from the agency's forecast a month ago when it saw supply and demand broadly in balance over the rest of this year and expected inventories to fall swiftly.

U.S. crude CLc1 prices were down 2 percent to $45.38 a barrel, while Brent LCOc1 lost 1.5 percent to $47.6. Canadian dollar was underperforming most of its key currency counterparts, although it gained against the Brazilian real and the Mexican peso.

Canadian government bond prices were mixed, with shorter-dated prices up and long-dated down. The two-year CA2YT=RR price up half a Canadian cent to yield 0.583 percent and the benchmark 10-year CA10YT=RR was unchanged to yield 1.156 percent.

The U.S. dollar was broadly higher, recovering ground lost in the previous session following a speech by Federal Reserve policymaker Lael Brainard that solidified the view that U.S. interest rates are unlikely to rise this month.

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