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Canadian dollar weakens to 9-day low as oil prices slide

Published 2019-01-17, 10:31 a/m
© Reuters.  Canadian dollar weakens to 9-day low as oil prices slide
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* Canadian dollar falls 0.3 percent against the greenback

* Loonie touches its weakest since Jan. 8 at 1.3319

* Price of U.S. oil declines 1.9 percent

* Canadian bond prices fall across much of the yield curve

TORONTO, Jan 17 (Reuters) - The Canadian dollar weakened to its lowest in more than one week against its U.S. counterpart on Thursday as oil prices fell and domestic jobs data showed a pullback last month in hiring.

At 10:14 a.m. (1514 GMT), the Canadian dollar CAD=D4 was trading 0.3 percent lower at 1.3294 to the greenback, or 75.22 U.S. cents.

The currency touched its weakest level since Jan. 8 at 1.3319. Still, it has advanced 2.6 percent since the start of 2019 after falling 7.8 percent last year.

The price of oil, one of Canada's major exports, fell after U.S. crude production neared an unprecedented 12 million barrels per day (bpd) and concern grew over weakening demand, particularly in light of the trade dispute between the United States and China. crude oil futures CLc1 were down 1.9 percent at $51.32 a barrel.

Canada lost 13,000 jobs in December, driven by hiring declines in the trade, transportation and utilities and construction sectors, according to a report from ADP (NASDAQ:ADP) released on Thursday. The November total of jobs added was revised up to 74,000 from 39,100, ADP said. economy is clawing its way through a soft patch, which will delay the next interest rate rise until at least April, according to economists polled by Reuters who said they were less confident about the Bank of Canada's rate hike path this year. inflation report for December is due for release on Friday, which could help guide expectations for future rate hikes.

Statistics Canada will delay the release of merchandise trade data, a key economic indicator, until the United States Customs and Border Protection resumes normal operations, the Canadian agency said. The trade data had been scheduled for release on February 5. government bond prices were higher across much of the yield curve, with the two-year CA2YT=RR up 1.5 Canadian cents to yield 1.912 percent and the 10-year CA10YT=RR rising 8 Canadian cents to yield 1.986 percent.

The gap between Canada's 10-year yield and its U.S. equivalent widened by 1.8 basis points to a spread of 75.2 basis points in favor of the U.S. bond.

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