CANADA FX DEBT-C$ steady despite oil as upcoming Fed minutes, data eyed
(Adds strategist comment, details, closing figures)
* Canadian dollar at C$1.3085, or 76.42 U.S. cents
* Bond prices higher across the maturity curve
By Solarina Ho
TORONTO, Aug 17 (Reuters) - The Canadian dollar was little changed against the greenback despite weaker crude prices on Monday as investors paused following last week's market volatility ahead of some key domestic data later in the week.
U.S. light crude oil settled below $42 a barrel, pressured in part by a stronger greenback and news that the economy of Japan, the world's No. 3 oil consumer, shrank in the second quarter. China, another top oil consumer, also remained a drag. Canada is a major oil producer.
"Given where we stand, I would've thought actually there would be a bit more pressure on the Canadian dollar," said Mark Chandler, head of Canadian fixed income and currency strategy at RBC Capital Markets, noting the lack of economic data in the United States and Canada to drive currency direction.
"People may be waiting in the U.S. for the (Federal Reserve) minutes and in Canada, we do have a bunch of data toward the end of the week, which could be preventing Canada from moving too much."
Chandler also said he expects the loonie to come under renewed pressure if the upcoming inflation and retail sales data due on Friday disappoints and if crude prices remain near 6-1/2-year lows. Continued...