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Canadian dollar hits 1-month low as trade deal doubts weigh

Published 2019-11-13, 09:33 a/m
© Reuters.  Canadian dollar hits 1-month low as trade deal doubts weigh
USD/CAD
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CL
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CA2YT=RR
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CA10YT=RR
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* Canadian dollar falls 0.1% against the greenback

* Loonie hits its weakest since Oct. 11 at 1.3268

* Price of U.S. oil decreases 0.8%

* Canadian bond prices rise across a flatter yield curve

TORONTO, Nov 13 (Reuters) - The Canadian dollar weakened to a one-month low against its U.S. counterpart on Wednesday, adding to its decline since the Bank of Canada shifted to a more dovish stance as investors became more pessimistic about global trade conflicts.

Global shares .WORLD fell after U.S. President Donald Trump threatened to "substantially" increase tariffs if China failed to agree a trade deal, and he also took a swipe at European Union trade policies. is a major exporter of commodities, including oil, so its economy could be hurt by a more uncertain outlook for global trade.

Oil prices fell as fading prospects for a trade deal between the United States and China weighed on the outlook for the global economy and energy demand. U.S. crude oil futures CLc1 were down 0.8% at $56.33 a barrel. 9:06 a.m. (1406 GMT), the Canadian dollar CAD=D4 was trading 0.1% lower at 1.3253 to the greenback, or 75.45 U.S. cents. The currency's strongest level of the session was 1.3230, while it touched its weakest since Oct. 11 at 1.3268.

The loonie has declined by as much as 1.5% since Oct. 30, when the Bank of Canada cut its economic growth forecasts and expressed concern about global trade uncertainty. of Canada Governor Stephen Poloz is due to speak on Thursday, which could help guide expectations for the interest rate outlook. Money markets see about a 25% chance of a rate cut next month. BOCWATCH

Canadian government bond prices were higher across a flatter yield curve, outperforming U.S. Treasuries after data showed U.S. consumer prices rebounded more than expected in October.

The two-year CA2YT=RR rose 6.5 Canadian cents to yield 1.57% and the 10-year CA10YT=RR was up 60 Canadian cents to yield 1.545%.

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