CANADA FX DEBT-C$ stabilizes while investors await Fed decision
* Canadian dollar at C$1.3175 or 75.90 U.S. cents * Bond prices higher across the maturity curve OTTAWA, July 27 (Reuters) - The Canadian dollar strengthened modestly against the greenback on Wednesday, stabilizing after a recent string of declines as investors awaited data that could influence oil prices, as well as an interest rate decision from the U.S. Federal Reserve. * U.S. crude prices were up 0.28 percent at $43.04 a barrel after U.S. industry data underscored concerns of persistent oversupply. U.S. government oil stocks data, which is closely watched by investors, was due at 10:30 a.m. EDT (1430 GMT). * The Federal Reserve is expected to hold interest rates steady when it releases its statement at 2:00 p.m. EDT (1800 GMT), putting off any potential hike until later in the year. * At 9:05 a.m. EDT (1305 GMT), the Canadian dollar was trading at C$1.3175 to the greenback, or 75.90 U.S. cents, slightly stronger than the Bank of Canada's official close of C$1.3189, or 75.82 U.S. cents. * The currency touched its weakest level in nearly four months earlier in the week. The loonie has lost about 2 percent in July as the price of oil, a major export for Canada, has drifted lower. * The Canadian economic calendar is light until Friday when gross domestic product will be released for May. Growth is forecast to have declined 0.4 percent in the month as the economy was hurt by wildfires in Alberta. * Canadian government bond prices were higher across the maturity curve, with the two-year price up 1 Canadian cent to yield 0.59 percent and the benchmark 10-year rising 21 Canadian cents to yield 1.101 percent. * The Canada-U.S. two-year bond spread was -17.2 basis points, while the 10-year spread was -45.6 basis points. (Reporting by Leah Schnurr; Editing by Nick Zieminski)
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