TORONTO (Reuters) - The Canadian dollar weakened to a one-month low against its U.S. counterpart on Thursday as a speech by Bank of Canada Governor Stephen Poloz loomed and investors grew more nervous about a global economic slowdown.
World stocks fell as Chinese economic data slowed in October and Germany only narrowly avoided a recession in the third quarter, adding to worries about the global growth fallout from the U.S.-China trade war.
Canada is a major exporter of commodities, including oil, so its economy could be hurt by a slowdown in global growth.
Last month, the Bank of Canada cut its global growth forecasts as it left its benchmark interest rate on hold at 1.75%.
Poloz is due to speak on the fourth industrial revolution at the Federal Reserve Bank of San Francisco. Canada's central bank will publish the governor's text at 9:45 p.m. ET (0245 GMT).
Money markets see chances of an interest rate cut next month at about 20%.
At 9:18 a.m. (1418 GMT), the Canadian dollar was trading 0.1% lower at 1.3262 to the greenback, or 75.40 U.S. cents. The currency hit its weakest intraday level since Oct. 11 at 1.3270.
The loonie weakened despite higher oil prices and domestic data showing the largest increase in new home prices in two years.
The new housing price index rose 0.2% in September, Statistics Canada said.
U.S. crude oil futures (CLc1) were up 0.7% at $57.52 a barrel after industry data showed a surprise drop in U.S. crude inventories.
Canadian government bond prices were higher across a flatter yield curve in sympathy with U.S. Treasuries. The two-year (CA2YT=RR) rose 6.5 Canadian cents to yield 1.542% and the 10-year (CA10YT=RR) was up 46 Canadian cents to yield 1.501%.
The 10-year yield touched its lowest intraday since Nov. 4 at 1.496%.
The leader of Canada's opposition New Democratic Party (NDP), Jagmeet Singh, on Wednesday threatened not to back Prime Minister Justin Trudeau's minority government unless it commits to tackling some of his policy concerns, including a national plan to pay for prescription drugs.