CANADA FX DEBT-Canadian dollar falls the most in four months after key US data cancelled
By Fergal Smith
TORONTO, Nov 19 (Reuters) - The Canadian dollar weakened to a 12-day low against its U.S. counterpart on Wednesday as oil prices fell and after the cancellation of October's U.S. jobs report reduced expectations for a rate cut next month by the Federal Reserve.
The loonie CAD= was trading 0.5% lower at 1.4060 per U.S. dollar, or 71.12 U.S. cents, after touching its weakest intraday level since November 7 at 1.4065. The decline was the steepest for the currency since July 7.
The U.S. Bureau of Labor Statistics said it would not be publishing the closely watched employment report for October, but will combine nonfarm payrolls for that month with November's report. November's employment report will be released on December 16, which is after the Federal Reserve's December 9-10 policy meeting.
"The news we're not going to get the October non-farm payroll before the December Fed policy decision has cut back on (U.S.) rate cut expectations quite a bit," said Shaun Osborne, chief currency strategist at Scotiabank.
"I wouldn't be at all surprised to see expectations effectively fall to zero in the next while unless we get a very weak September payroll report."
The BLS will publish on Thursday September's employment report, which was delayed by the 43-day government shutdown.
The U.S. dollar .DXY rose against a basket of major currencies. Investors see a 73% chance the Fed will leave interest rates on hold in December.
The price of oil CLc1, one of Canada's major exports, settled 2.1% lower at $59.44 a barrel after a report of a U.S. proposal to end the Russian war in Ukraine.
The Bank of Canada is also expected to leave policy unchanged next month. It called for a coordinated economy-wide approach to boost weak productivity, an issue it said was becoming more pressing in the face of challenges caused by U.S. trade policy.
Canadian bond yields were mixed across the curve, with the 10-year CA10YT=RR little changed at 3.249%.
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