* Canadian dollar dips 0.1 percent against the greenback
* Loonie touches its weakest since Jan. 7 at 1.3375
* Price of U.S. oil rises nearly 1 percent
* Bond prices rise across the yield curve
By Fergal Smith
TORONTO, Jan 24 (Reuters) - The Canadian dollar weakened to its lowest level in more than two weeks against its U.S. counterpart on Thursday as the greenback broadly climbed and optimism faded for a near-term resolution to a trade dispute between the United States and China.
The United States and China are a long way from resolving trade issues, but there is a fair chance the two countries will get to a trade deal, U.S. Commerce Secretary Wilbur Ross said. exports many commodities, including oil, so its economy could be hurt if the trade dispute drags on.
"In a weaker global economy, the U.S. dollar always strengthens into that and Canada is on the opposite side of that trade," said Rob Edel, chief investment officer at Nicola Wealth Management.
The U.S. dollar .DXY climbed against a basket of major currencies after European Central Bank President Mario Draghi said economic risks have moved to the downside, pressuring the euro. price of oil was boosted by the U.S. threat of sanctions on Venezuela, but gains were capped by record high gasoline inventories and an unexpected big build in crude stocks in the United States. U.S. crude oil futures CLc1 settled nearly 1 percent higher at $53.13 a barrel. 3:16 p.m. (2016 GMT), the Canadian dollar CAD=D4 was trading 0.1 percent lower at 1.3352 to the greenback, or 74.90 U.S. cents. The currency touched its weakest level since Jan. 7 at 1.3375.
The 17-day low for the loonie comes after a string of weak domestic data this week prompted some economists to project a November contraction in Canada's economy.
"It (the Canadian dollar) is trading below where you would expect it to, but based on the trends and this overleveraged consumer I don't see a lot of momentum for it," Edel said.
Canadians have taken on record amounts of debt in recent years, which has helped fuel a rapid rise in real estate prices. the housing market has softened since the start of 2018, weighed by tighter mortgage rules and interest rate hikes from the Bank of Canada.
Chances of further tightening by the summer have fallen to less than 30 percent from more than 50 percent at the end of last week. BOCWATCH
Canadian government bond prices were higher across the yield curve in sympathy with U.S. Treasuries. The 10-year CA10YT=RR rose 30 Canadian cents to yield 1.935 percent.