CANADA FX DEBT-C$ finds modest strength ahead of data, Fed
* C$ at C$0.9906 vs US$, or $1.0095 * Bond prices mixed * C$ expected to trade between C$0.9895 and C$0.9930 * Fed meeting, Canadian GDP in focus this week By Solarina Ho TORONTO, Aug 27 (Reuters) - The Canadian dollar drifted higher against its U.S. counterpart on Monday, with volumes light, little news to provide firm direction, and traders focused on major events later this week. U.S. stocks opened slightly higher, which helped overall risk sentiment, providing a modest boost to the currency. "Generally speaking, the theme for the Canadian dollar has always been and will continue to be the risk-on and risk-off theme and with little activity overnight...allowed at least some of the negative sentiment to be subdued for the day," said Mazen Issa, macro strategist with TD Securities. At 9:37 a.m. (1337 GMT) the Canadian dollar traded at C$0.9906 versus the U.S. dollar, or $1.0095, firmer than Friday's North American close at C$0.9916, or $1.0085. Volumes, already seasonally light, were particularly thin on Monday due to the Summer Bank holiday in Britain. For the day, the currency was seen trading between C$0.9895 and C$0.9930, said Issa. All eyes will be on U.S. Federal Reserve Chairman Ben Bernanke and other central bank leaders when they meet in Jackson Hole, Wyoming on Friday for a key meeting that could hint at the Fed's monetary policy to come. In a letter obtained by Reuters on Friday, Bernanke told a congressional oversight panel the Fed has room to deliver additional monetary stimulus to boost the U.S. economy. Also in focus will be Friday's Canadian gross domestic product figures, which is expected to soft. "In Canada, domestic demand (has been) shouldering the burden for the economic growth in the country and that expected to remain the case," said Issa. Canadian bond prices were mixed, with the two-year bond down half a Canadian cents to yield 1.155 percent and the benchmark 10-year bond up 22 Canadian cent to yield 1.810 percent.
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