* Loonie touches its weakest since Jan. 7 at 1.3355
* Canadian factory sales fall 1.4 percent in November
* Canadian wholesale trade falls 1.0 percent in November
* Price of U.S. oil falls 2.3 percent
* Canadian bond prices rise across yield curve
By Fergal Smith
TORONTO, Jan 22 (Reuters) - The Canadian dollar weakened to a two-week low against its U.S. counterpart on Tuesday as investors worried about the global growth outlook and weaker-than-expected data added to evidence that Canada's economy slowed at the end of 2018.
Canadian factory sales decreased by 1.4 percent in November from October on lower petroleum and coal product sales, while November wholesale trade was down 1.0 percent, Statistics Canada said. data supported the Bank of Canada's gloomy short-term forecasts for the economy which have sidelined prospects of further interest rate hikes over the coming months. BOCWATCH CAD/POLL
The central bank has said that low oil prices, which have led to production cuts in Alberta, and a weak housing market would harm the economy in the fourth quarter of 2018 and the first quarter of this year. really think that Canadian data have peaked and I think going forward the story is going to get worse and worse," said Christian Lawrence, senior market strategist at Rabobank.
Canada's retail sales report for November is due on Wednesday which will help economists finalize forecasts for monthly GDP.
At 3:37 p.m. (2037 GMT), the Canadian dollar CAD=D4 was trading 0.4 percent lower at 1.3352 to the greenback, or 74.90 U.S. cents. The currency touched its weakest intraday level since Jan. 7 at 1.3355.
The decline for the loonie came as stocks and the price of oil, one of Canada's major exports, were pressured by fears of a slowdown in the global economy. U.S. crude oil futures CLc1 settled 2.3 percent lower at $52.57 a barrel. Financial Times reported the Trump administration rejected an offer from China for preparatory talks ahead of next week's high-level trade negotiations. sign that global trade will slow is going to have a more meaningful impact on Canada than the U.S.," Lawrence said.
Canadian government bond prices were higher across the yield curve in sympathy with U.S. Treasuries. The two-year CA2YT=RR rose 9 Canadian cents to yield 1.893 percent and the 10-year CA10YT=RR climbed 43 Canadian cents to yield 1.967 percent.
On Friday, the 10-year yield touched its highest intraday in one month at 2.049 percent.