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Canadian dollar weakens 0.1% against the greenback

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Posts eighth straight day of declines

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For the week, the currency loses 0.7%

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Canadian bond yields ease across the curve

By Fergal Smith

TORONTO, July 26 (Reuters) - The Canadian dollar

weakened for an eighth straight day against its U.S. counterpart

on Friday as oil prices fell and after the Bank of Canada cut

interest rates further earlier in the week.

The loonie was trading 0.1% lower at 1.3835 per U.S.

dollar, or 72.28 U.S. cents. Earlier in the session, the

currency touched 1.3848, matching the eight-month low that was

set on Thursday.

The daily losing streak was the longest since December 2018.

For the week, it was down 0.7%.

"A pretty quiet end to the week, but the continued decline

in WTI crude oil prices and CAD weakness on the crosses have

been catalysts to push USD-CAD higher today," said George Davis,

chief technical strategist at RBC Capital Markets.

"This year's prior high from mid-April at 1.3846 has been

able to cap rallies (in USD-CAD) so far, with the market keeping

a close eye on this level into next week."

The price of oil, one of Canada's major exports,

settled 1.4% lower at $77.16 a barrel on declining Chinese

demand and hopes of a Gaza ceasefire agreement.

On Wednesday, the BoC lowered its benchmark rate for a

second straight month, cutting by 25 basis points to 4.50%.

The central bank is shifting its focus to boosting the

economy rather than suppressing inflation, which raises

prospects of additional easing in the coming months, analysts

say.

Investors see a roughly 70% chance of a rate cut at the next

policy announcement in September.

Canadian bond yields fell across the curve, tracking moves

in U.S. Treasuries after U.S. data showed prices rising modestly

in June, supporting bets the Federal Reserve would begin its

easing cycle in the coming months.

The 10-year was down 5 basis points at 3.324%,

trading at nearly its lowest level in one month.