CANADA FX DEBT-C$ weakens as oil prices sink, triple event on Thursday in focus


* Canadian dollar at C$1.3512, or 74.01 U.S. cents

* Loonie touches its strongest since May 29 at C$1.3427

* Longer term bond prices lower across yield curve

TORONTO, June 7 (Reuters) - The Canadian dollar weakened on Wednesday against its U.S. counterpart as oil prices tumbled and investors braced for a trio of major events on Thursday. Prices of oil, one of Canada's major exports, fell sharply after the U.S. government reported an unexpected rise in crude and gasoline inventories, which added to concerns that efforts to cut output by the world's biggest oil producers have not made enough impact.

U.S. crude prices were down 5.1 percent to $45.74 a barrel, while Brent crude lost 4.0 percent to

$48.11. "Lower crude prices are impacting Canada's potential terms of trade ... and lowering the likelihood of a big bump in capex investment in the energy complex in Canada over the coming six to 12 months," said Karl Schamotta, director global markets strategy at Cambridge Global Payments. "This is turning investors slightly bearish on Canada's prospects, particularly considering that we have softness percolating across the real estate markets here."

At 4:00 p.m. ET (2000 GMT), the Canadian dollar was

trading at C$1.3512 to the greenback, or 74.01 U.S. cents, down 0.4 percent. The currency's weakest level of the session was C$1.3525, while it touched its strongest since May 29 at C$1.3427. The loonie hit a one-week high earlier in the session as the Organisation for Economic Cooperation and Development forecast that Canada's economy will grow 2.8 percent this year after a 1.4 percent expansion in 2016. "At the same time, traders are generally nervous about the triple threat that we have coming tomorrow," said Schamotta. The three key events that could drive market direction are a European Central Bank meeting, a parliamentary election in the UK and testimony by former U.S. FBI Director James Comey to a Senate committee on Thursday. The Bank of Canada's review of developments in the financial system is also due on Thursday, followed by a news conference with Governor Stephen Poloz. Investors will weigh Poloz's assessment of the housing and mortgage markets in light of recent troubles at non-bank lender Home Capital. The price of longer term Canadian government bonds were mostly lower across the yield curve. The two-year price dipped half a Canadian cent to yield 0.715 percent and the

10-year declined 14 Canadian cents to yield 1.410

percent. Canada's employment report for May is due on Friday.

(Reporting by Fergal Smith; Additional reporting by Solarina Ho; Editing by Nick Zieminski and Diane Craft)