CANADA FX DEBT-C$ rises with oil; BoC's Patterson due to speak on economy

    * Canadian dollar rises 0.2 percent against the greenback
    * Price of U.S. oil gains 0.6 percent
    * Canadian building permits fall by 5.5 percent in January
    * Canada's 2-year yield hits a 15-month low at 1.652 percent

    TORONTO, March 7 (Reuters) - The Canadian dollar edged
higher against its U.S. counterpart on Thursday as oil prices
rose but the loonie held near a two-month low hit the day before
when the Bank of Canada was more dovish on the outlook for
higher interest rates.
    Faced with a slowing global and domestic economy, the Bank
of Canada held interest rates steady as expected on Wednesday
and said there was "increased uncertainty" about the timing of
future rate increases.             
    Money markets, which have moved to price in about a 25
percent chance of an interest rate cut this year, now will look
to a speech by Bank of Canada Deputy Governor Lynn Patterson for
further guidance on the rate outlook.           
    The central bank will release the text of Patterson's
speech, which is on the topic of economic progress, at 12:30
p.m. (1730 GMT).    
    The price of oil, one of Canada's major exports, rose on the
back of continuing OPEC-led supply cuts and U.S. sanctions
against exporters Venezuela and Iran. U.S. crude oil futures
       were up 0.6 percent at $56.53 a barrel.             
    At 9:20 a.m. (1420 GMT), the Canadian dollar          was
trading 0.2 percent higher at 1.3420 to the greenback, or 74.52
U.S. cents. The currency, which on Wednesday touched its weakest
intraday since Jan. 4 at 1.3457, traded in a range of 1.3415 to
    The loonie gained ground on Thursday even as the greenback
       rose against a basket of major currencies. The U.S.
dollar currency index was boosted by a weaker euro, after the
European Central Bank pushed out the timing of its first
post-crisis rate hike to next year and offered banks new rounds
of multi-year cash.            
    The value of Canadian building permits fell by 5.5 percent
in January from December, Statistics Canada said. Analysts had
expected a decrease of 5.0 percent.             
    Canada's employment report for February is due on Friday.
    Canadian government bond prices were higher across the yield
curve in sympathy with U.S. Treasuries. The two-year           
rose 5 Canadian cents to yield 1.655 percent and the 10-year
            climbed 24 Canadian cents to yield 1.799 percent.
    The two-year yield touched its lowest intraday since
December 2017 at 1.652 percent.

 (Reporting by Fergal Smith
Editing by Bill Trott)