March 5, 2020 / 3:33 PM / a month ago

CANADA FX DEBT-Canadian dollar falls ahead of Poloz speech as virus worries climb

    * Canadian dollar weakens 0.2% against the greenback
    * Loonie trades in a range of 1.3383 to 1.3432
    * Price of U.S. oil decreases 0.3%
    * Canadian bond yields fall across the yield curve

    TORONTO, March 5 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Thursday as concern about the
economic impact of the coronavirus outbreak rose and ahead of a
speech by the governor of Canada's central bank, which slashed
rates the day before.
    At 10:10 a.m. (1510 GMT), the Canadian dollar          was
trading 0.2% lower at 1.3409 to the greenback, or 74.58 U.S.
cents. The currency, which last Friday hit a nine-month low at
1.3465, traded in a range of 1.3383 to 1.3432.
    The Bank of Canada said on Wednesday the virus outbreak was
"a material negative shock" to the Canadian and global outlooks
as it slashed its benchmark interest rate by 50 basis points,
its largest cut in more than 10 years. Governor Stephen Poloz is
due to deliver an economic progress report on Thursday, with the
text set for release at 12:45 ET.
    U.S. stock indexes fell as deaths from the coronavirus rose
in the United States, forcing California to declare a state of
emergency, while crippled travel demand hit airline stocks.
            
    The price of oil, one of Canada's major exports, declined as
the epidemic showed no signs of slowing, and while major
producers agreed on deeper output cuts to bolster prices, they
could not immediately secure Russian support for the decision.
U.S. crude oil futures        were down 0.3% at $46.66 a barrel.
    Canadian bond yields fell across the yield curve, with the
10-year down 12.3 basis points at 0.897%. On Wednesday, the
10-year yield touched a record low at 0.857%.
    Canada's jobs report for February is due on Friday.

 (Reporting by Fergal Smith)
  
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