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CANADA FX DEBT-C$ hits 2-week low as Trump attacks slow pace of NAFTA talks

Published 2018-09-27, 09:28 a/m
© Reuters.  CANADA FX DEBT-C$ hits 2-week low as Trump attacks slow pace of NAFTA talks
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* Canadian dollar falls 0.4 percent against greenback

* Loonie touches its weakest level since Sept. 11 at C$1.3083

* Price of U.S. oil rises nearly 1 percent

* Canadian bond prices trade mixed across the yield curve

TORONTO, Sept 27 (Reuters) - The Canadian dollar weakened to its lowest in more than two weeks against its advancing U.S. counterpart on Thursday after U.S. President Donald Trump blasted Canada over the slow pace of talks over the NAFTA trade deal.

Trump said on Wednesday he was unhappy he had rejected Canadian Prime Minister Justin Trudeau's request for a one-on-one meeting and repeated a threat to impose tariffs on Canadian autos. Trudeau spokeswoman Chantal Gagnon said: "No meeting was requested. We don't have any comment beyond that."

The U.S. dollar .DXY also climbed against a basket of six major currencies one day after the U.S. Federal Reserve raised interest rates for the third time this year, and as the euro was weighed down by media reports that an Italian budget meeting was likely to be delayed. Bank of Canada has also been raising rates this year. Its governor, Stephen Poloz, could provide clues on prospects of another hike in October when he speaks later today. The central bank will release his prepared remarks at 5:45 p.m. (2145 GMT).

At 9:12 a.m. (1312 GMT), the Canadian dollar CAD=D4 was trading 0.4 percent lower at C$1.3069 to the greenback, or 76.52 U.S. cents. It touched its weakest since Sept. 11 at C$1.3083.

The price of oil, one of Canada's major exports, was supported by the prospect of a shortfall in global supply once U.S. sanctions against major crude exporter Iran come into force in just five weeks' time. crude CLc1 prices were up nearly 1 percent at $72.25 a barrel.

Canadian government bond prices were mixed across the yield curve, with the 10-year CA10YT=RR falling 3 Canadian cents to yield 2.420 percent. The 10-year yield touched its highest in more than four months on Tuesday at 2.472 percent.

Canadian average weekly earnings rose 3.0 percent year-over-year in July. Gross domestic product data for July is due on Friday.

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