CANADA FX DEBT-C$ little changed ahead of Fed, BoJ rate decisions

Mon Oct 26, 2015 4:58pm EDT
 
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* Canadian dollar at C$1.3163, or 75.97 U.S. cents

* Bond prices higher across the maturity curve (Adds details on U.S. Federal Reserve, quotes, updates prices)

TORONTO/OTTAWA Oct 26 (Reuters) - The Canadian dollar was little changed against the greenback on Monday ahead of U.S. and Japan central bank decisions on interest rates, after last week's volatility left the currency at a three-week low.

The U.S. Federal Reserve is expected to leave rates unchanged this week, but investors will look for any hints as to whether the central bank is still on track to tighten credit by the end of the year.

The Bank of Japan will meet for a rate review on Friday. While it is set to cut its price forecasts, many officials prefer to hold off expanding its stimulus program.

The Canadian dollar rallied through the first half of October as investors expected the Fed to hold off on a rate hike.

But the currency has given up ground in recent sessions and that the rally is likely done for the time being, said Scott Smith, senior market analyst at Cambridge Global Payments in Toronto.

"I think really we've seen a little bit of exhaustion, price action has been quiet to start the week," said Smith.

"The overall larger trend for the Canadian dollar is that we're likely to go lower," he said.   Continued...