CANADA FX DEBT-Canadian dollar hits one-week low ahead of Macklem speech on trade

By Fergal Smith

TORONTO, Sept 22 (Reuters) - The Canadian dollar weakened to a one-week low against its U.S. counterpart on Monday, with the currency giving back much of the previous week's gains ahead of a speech by Bank of Canada Governor Tiff Macklem.

The loonie CAD= was trading 0.3% lower at 1.3820 per U.S. dollar, or 72.36 U.S. cents, after touching its weakest intraday level since September 15 at 1.3829.

"The Canadian dollar was the strongest G10 currency last week, helped by the stronger U.S. dollar environment," said Marc Chandler, chief market strategist at Bannockburn Global Forex LLC.

"The U.S. dollar is a bit better offered here at the start of the week and so is the Canadian dollar."

Macklem is due to speak on Tuesday on the topic of global trade. Last Wednesday, the BoC lowered its benchmark interest rate by 25 basis points to 2.50%, marking its first cut since March.

"The Bank of Canada cut last week and the market thinks there will be a good chance of another cut in Q4," Chandler said.

The Federal Reserve also eased last Wednesday in its first move this year, but the U.S. central bank signaled less urgency to lower borrowing than some investors had expected.

The price of oil CLc1, one of Canada's major exports, settled down 0.1% at $62.64 a barrel and Canadian bond yields edged lower across a flatter curve.

The 10-year CA10YT=RR was down 1.2 basis points at 3.190%, while it was trading 1.4 basis points further below the equivalent U.S. rate at a spread of 95.1 basis points. That's the largest gap since July 9.

Canadian producer prices rose by 0.5% in August from July, lifting the annual rate to 4% from 2.6%.