December 21, 2018 / 2:15 PM / 3 months ago

CANADA FX DEBT-C$ hits 19-month low as falling oil prices offset GDP gain

    * Canadian dollar falls 0.2 percent against the greenback
    * Loonie touches its weakest since May 2017 at 1.3564       
    * Canadian GDP rises 0.3 percent in October
    * Price of U.S. oil falls 1.1 percent
    * Bond prices trade mixed across a flatter yield curve

    TORONTO, Dec 21 (Reuters) - The Canadian dollar weakened to
a 19-month low against its U.S. counterpart on Friday as stocks
and the price of oil fell, offsetting data showing stronger than
expected growth in the domestic economy.
    The Canadian economy expanded by 0.3 percent in October from
September, pushed higher by strength in manufacturing, finance
and insurance, Statistics Canada data indicated. Analysts had
predicted an increase of 0.2 percent.             
    Separate data from Statistics Canada showed that the value
of Canadian retail trade rose by 0.3 percent in October from
September, thanks largely to higher sales at motor vehicle
dealers and gasoline stations.                  
    Stocks were pressured by increasing worries of slowing
global growth and the threat of a U.S. government shutdown.
                
    The price of oil, one of Canada's major exports, extended
its recent decline as global oversupply kept buyers away from
the market ahead of the long holiday break. The price of U.S.
crude        was down 1.1 percent at $45.36 a barrel.
            
    At 8:58 a.m. (1358 GMT), the Canadian dollar          was
trading 0.2 percent lower at 1.3539 to the greenback, or 73.86
U.S. cents. The currency touched its weakest level since May
2017 at 1.3564.        
    Canadian government bond prices were mixed across a flatter
yield curve, with the two-year            down 0.5 Canadian cent
to yield 1.927 percent and the 10-year             rising 14
Canadian cents to yield 1.998 percent.
    On Thursday, the 10-year yield hit its lowest intraday in
one year at 1.944 percent.

 (Reporting by Fergal Smith; Editing by Steve Orlofsky)
  
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