* Canadian dollar weakens 0.4% against the greenback
* Touches its weakest since October 2022 at 1.3892
* Price of U.S. oil settles 1.6% lower
* Bond yields trade mixed across steeper curve
TORONTO, Oct 31 (Reuters) - The Canadian dollar weakened to a one-year low against its U.S. counterpart on Tuesday as the greenback notched broad-based gains and domestic data supported bets that the next move by the Bank of Canada would be a shift to interest rate cuts.
The loonie was trading 0.4% lower at 1.3880 to the greenback, or 72.04 U.S. cents, after touching its weakest intraday level since October 2022 at 1.3892.
"This has been quite a negative environment for the Canadian dollar," said Jay Zhao-Murray, a market analyst at Monex Canada Inc. "From the fundamental side, Canada's economy is holding on for dear life while the U.S. is recording tremendous gains."
The Canadian economy stalled in August and likely slipped into a shallow recession in the third quarter, data from Statistics Canada showed, a sign the BoC's 10 interest rate hikes since last year are weighing on growth.
Money markets see a roughly 90% chance the Canadian central bank will hold rates at a 22-year high of 5% in December and are pricing in at least one rate cut in 2024.
The U.S. dollar climbed against a basket of major currencies as the yen slumped and ahead of a Federal Reserve policy decision on Wednesday, while the price of oil settled 1.6% lower at $81.02 a barrel. Oil is one of Canada's major exports.
Canadian government bond yields were mixed across a steeper curve. The 2-year eased 2.8 basis points to 4.636% and the 10-year was up 2.1 basis points at 4.054%. (Reporting by Fergal Smith; Editing by Aurora Ellis)
