CANADA FX DEBT-C$ steady as Bank of Canada in focus, U.S. on holiday
* Canadian dollar at C$1.1974 or 83.51 U.S. cents * Bond prices higher across the maturity curve By Solarina Ho TORONTO, Jan 19 (Reuters) - The Canadian dollar was steady against the U.S. dollar on Monday with U.S. markets closed for the Martin Luther King Jr. holiday while some investors were sidelined awaiting release of the Bank of Canada's quarterly Monetary Policy Report on Wednesday. The bank is set to deliver its latest interest rate decision along with the report, which will provide growth forecasts that many expect will be revised lower, driven in part by cheap crude. Oil prices have fallen by about half since last June on soaring output and slowing demand. The central bank has said the net impact of oil will be negative for Canada, a major producer of the commodity. "I think (Bank of Canada Deputy Governor Timothy) Lane laid the framework in talking about oil prices staying low for a significant period of time," said Don Mikolich, executive director, foreign exchange sales at CIBC World Markets. CIBC does not expect the bank to raise rates until the first quarter of next year. Job cuts announced last week by Target Corp, Sony Corp, Suncor Energy and Bombardier Inc will likely weigh on the outlook as well, Mikolich said. "The market seems to be having a very dovish outlook to it. It's really going to weigh on the Canadian dollar in terms of opportunities to see much material appreciation," he said. At 9:33 a.m. (1433 GMT), the Canadian dollar was trading at C$1.1974 to the greenback, or 83.51 U.S. cents, little changed from Friday's close of C$1.1968, or 83.56 U.S. cents. Last week, the currency broke through the C$1.20, a level some forecasters had not expected until later this year. Canadian government bond prices were higher across the maturity curve, with the two-year up 4 Canadian cents to yield 0.855 percent and the benchmark 10-year rising 25 Canadian cents to yield 1.512 percent. (Reporting by Solarina Ho; Editing by Peter Galloway)
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