CANADA FX DEBT-C$ slips as markets await Fed minutes
* Canadian dollar at C$1.3080 or 76.45 U.S. cents * Bond prices mixed across the maturity curve TORONTO, Aug 19 (Reuters) - The Canadian dollar retreated against the U.S. dollar on Wednesday, as investors, looking for clues on when the Federal Reserve will likely resume hiking interest rates, awaited the release of the July meeting minutes. The U.S. central bank is widely expected to raise rates by the end of the year, possibly as early as next month. This would be the first hike in nearly a decade, but some wonder if worries about a slowdown in China and the latest slump in commodity prices, which could drag on inflation, could push the timing further out. The price of crude, a significant Canadian export, also fell, adding further pressure on the currency, though the commodity was off recent lows. * At 9:50 a.m. EDT (1350 GMT), the Canadian dollar was trading at C$1.3080 to the greenback, or 76.45 U.S. cents, weaker than the Bank of Canada's official close of C$1.3056, or 76.59 U.S. cents. * The Canadian dollar was trading between C$1.3024 and C$1.3096 so far on Wednesday. * U.S. consumer prices rose slightly in July, but an increase in the cost of shelter suggested inflation was probably stabilizing enough to support expectations the Federal Reserve will raise interest rates this year. * The minutes from the Federal Open Markets Commission (FOMC) are due at 2 p.m. EDT. * Canadian government bond prices were mixed across the maturity curve, with the longer term bonds falling. The two-year price was off 0.5 Canadian cent to yield 0.418 percent and the benchmark 10-year slid 10 Canadian cents to yield 1.407 percent. * The Canada-U.S. two-year bond spread widened to -31.2 basis points, while the 10-year spread widened to -81.0 basis points. (Reporting by Solarina Ho)
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