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CANADA FX DEBT-C$ slips ahead of Poloz speech as oil prices fall

Published 2017-12-14, 09:49 a/m
Updated 2017-12-14, 09:50 a/m
© Reuters.  CANADA FX DEBT-C$ slips ahead of Poloz speech as oil prices fall

* Canadian dollar at C$1.2838, or 77.89 U.S. cents

* Oil prices fall 0.9 percent

* Bond prices lower across the yield curve

TORONTO, Dec 14 (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Thursday after oil prices fell and data showed robust U.S. retail sales, while investors turned their attention to a speech by Bank of Canada Governor Stephen Poloz.

Oil, one of Canada's major exports, declined after the International Energy Agency increased its forecast for U.S. output growth in 2018. crude CLc1 prices were down 0.9 percent at $56.11 a barrel.

U.S. retail sales increased more than expected in November, pointing to sustained strength in the economy. data helped boost the U.S. dollar .DXY , which had fallen on Wednesday after the Federal Reserve raised interest rates, as expected, but left its rate outlook for the coming years unchanged.

Bank of Canada Governor Stephen Poloz was due to discuss three concerns that keep him awake at night. The central bank will release his prepared remarks at 12:25 p.m. EST (1725 GMT).

At 9:23 a.m. EST, the Canadian dollar CAD=D4 was down 0.2 percent at C$1.2838 to the greenback, or 77.89 U.S. cents.

The currency traded in a range of C$1.2802 to C$1.2866.

Resales of Canadian homes rose 3.9 percent in November from October, the fourth straight monthly rise, but the momentum may not last as stricter mortgage rules take effect in January, the Canadian Real Estate Association said. Canada said new home prices edged up by 0.1 percent in October on strength in the capital, Ottawa, and the first increase in Toronto in five months. the statistics agency said Canadian household debt as a share of income reached a record high of 171.1 percent in the third quarter. The report is likely to reinforce concerns that consumers could run into trouble as interest rates rise. government bond prices were lower across the yield curve, in sympathy with U.S. Treasuries. The two-year CA2YT=RR dipped 3 Canadian cents to yield 1.522 percent, and the 10-year CA10YT=RR declined 12 Canadian cents to yield 1.858 percent.

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