CANADA FX DEBT-C$ firms as Fed weighs on greenback, data in view

Thu Jul 28, 2016 9:23am EDT
 
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* Canadian dollar at C$1.3165, or 75.96 U.S. cents
    * Bond prices mostly lower across the maturity curve

    OTTAWA, July 28 (Reuters) - The Canadian dollar firmed
against the greenback on Thursday as its U.S. counterpart was
under pressure after the Federal Reserve stopped short of
signaling an imminent interest rate hike, while investors looked
to domestic economic data at the end of the week.
    * The U.S. central bank left interest rates unchanged on
Wednesday and said the near-term risks to the U.S. economic
outlook had diminished. While that opened the door to another
rate hike, the Fed gave no firm indication it would do so at its
next meeting in September. The U.S. dollar was off 0.5 percent
against a basket of currencies. 
    * U.S. crude prices were unchanged at $41.92 a
barrel, not far from a three-month low on Wednesday, the day
after data showed a surprising rise in crude inventories. 
    * At 9:05 a.m. EDT (1305 GMT), the Canadian dollar 
traded at C$1.3165 to the greenback, or 75.96 U.S. cents,
stronger than the Bank of Canada's official close of C$1.3191,
or 75.81 U.S. cents.
    * The currency's strongest level of the session was
C$1.3101, while its weakest was C$1.3187.
    * Following a light week on the domestic economic calendar,
investors were turning their attention to monthly gross domestic
product data due on Friday. Economic growth is expected to have
declined 0.4 percent in May as the economy was hurt by
disruptions caused by wildfires in Alberta.
    * Canadian government bond prices were mostly lower across
the maturity curve, with the two-year price down 0.5
Canadian cent to yield 0.581 percent and the benchmark 10-year
 falling 10 Canadian cents to yield 1.087 percent.
    * The Canada-U.S. two-year bond spread was -14.9 basis
points, while the 10-year spread was -44.0 basis points.

 (Reporting by Leah Schnurr; Editing by Jeffrey Benkoe)