* Canadian dollar falls 0.2% against the greenback
* Canada payroll employment rises 25,900 in January
* Price of U.S. oil rises 1.3%
* Canadian bond yields fall across a flatter yield curve
TORONTO, Feb 20 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Thursday as evidence of the
coronavirus spreading outside of China weighed on investor
sentiment, while a measure of domestic employment showed jobs
rose for the seventh straight month.
Stocks globally fell as South Korea reported a
spike in new cases and Japan reported two new deaths, while
research suggested the virus spreads faster than previously
thought.
Canada is a major exporter of commodities, including oil, so
its economy could be hurt should the coronavirus outbreak slow
global growth.
U.S. crude oil futures were up 1.3%, supported by
China's efforts to boost its economy and supply concerns in
Venezuela and Libya.
At 9:46 a.m. EST (1446 GMT), the Canadian dollar
was trading 0.2% lower at 1.3241 to the greenback, or 75.52 U.S.
cents. The currency traded in a range of 1.3212 to 1.3265.
Canada added 25,900 jobs in January, led by hiring in the
trade, transportation and utilities and construction sectors,
according to a report from payroll services provider ADP
released on Thursday.
Separate data showed that the Teranet-National Bank
Composite House Price Index rose 0.1% in January, paced by gains
for the Eastern Canadian metropolitan areas of Hamilton and
Montreal.
Canadian bond yields fell across a flatter yield curve in
sympathy with U.S. Treasuries. The 10-year yield was down 2.8
basis points at 1.331%.
Canada's retail sales report for December is due on Friday,
which could help guide expectations for the Bank of Canada
interest rate outlook. Money markets see about a 40% chance that
the central bank would ease by April.
(Reporting by Fergal Smith; editing by Jonathan Oatis)
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