January 8, 2020 / 2:47 PM / 9 days ago

CANADA FX DEBT-Canadian dollar approaches 1-week low as oil prices fall

    * Canadian dollar weakens 0.1% against the greenback
    * Price of U.S. oil declines 0.8%
    * Canadian bond prices rise across the yield curve

    TORONTO, Jan 8 (Reuters) - The Canadian dollar weakened
slightly against its U.S. counterpart on Wednesday, nearing a
one-week low it hit the previous day as oil prices fell on
fading alarm over an Iran rocket strike.
     The price of oil, one of Canada's major exports, fell from
a four-month peak hit in frenzied early trading after a rocket
attack by Iran on American forces in Iraq appeared to have no
impact on oil infrastructure or crude flows. U.S. crude oil
futures        were down 0.8% at $62.19 a barrel.             
    At 9:26 a.m. (1426 GMT), the Canadian dollar          was
trading 0.1% lower at 1.3012 to the greenback, or 76.85 U.S.
cents. The currency, which hit on Tuesday its weakest intraday
level since New Year's Eve at 1.3029, traded in a range of
1.2977 to 1.3024.
    Bank of Canada Governor Stephen Poloz is due to speak on
Thursday, which could give investors clues on the interest rate
outlook. The central bank left its benchmark interest rate on
hold at 1.75% in 2019 even as some other major central banks,
such as the Federal Reserve and the European Central Bank,
eased.
    Canada's jobs data for December is due on Friday. In
November, the Canadian job market shed more than 71,000
positions.
    Canadian government bond prices were higher across the yield
curve in sympathy with U.S. Treasuries. The two-year           
rose 0.5 Canadian cents to yield 1.636% and the 10-year
            was up 5 Canadian cents to yield 1.577%.
    The 2-year yield touched its lowest intraday level since
Dec. 4 at 1.579%.

 (Reporting by Fergal Smith; Editing by Steve Orlofsky)
  
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