CANADA FX DEBT-Canadian dollar dips as virus variant risk offsets GDP gain

BY Reuters | ECONOMIC | 11/30/21 09:34 AM EST
       * Loonie touches its weakest since Sept. 22 at 1.2812
    * Price of U.S. oil falls nearly 4%
    * Canada's economy grows 5.4% in the third quarter
    * Canadian bond yields ease across a flatter curve

    TORONTO, Nov 30 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Tuesday as fears that the
Omicron coronavirus variant could impede global economic
recovery offset data showing stronger than expected growth in
the domestic economy.
    World share markets dropped after the CEO of drugmaker
Moderna (MRNA)          warned that COVID-19 vaccines are unlikely to
be as effective against the new variant.
    Canada is a major producer of commodities, including oil, so
the loonie tends to be sensitive to prospects for global growth.
    U.S. crude oil futures        fell nearly 4% to $67.23,
while the Canadian dollar        was trading 0.2% lower at
1.2767 to the greenback, or 78.33 U.S. cents.
    The currency touched its weakest intraday level since Sept.
22 at 1.2812.
    Canada's economy grew 5.4% in the third quarter on an
annualized basis, beating analyst expectations for a gain of
3.0%, Statistics Canada data showed.
    A preliminary estimate for October showed a gain of 0.8%,
while September's GDP was in line with expectations for a 0.1%
    Canadian government bond yields were lower across a flatter
curve, tracking the move in U.S. Treasuries.
    The 10-year rate             hit its lowest intraday level
since Oct. 14 at 1.534% before recovering slightly to 1.546%,
down 6.8 basis points on the day.

 (Reporting by Fergal Smith
Editing by Nick Zieminski)

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