CANADA FX DEBT-C$ strengthens slightly before Jackson Hole gathering
(Adds analyst comments and details on Jackson Hole, updates prices) * Canadian dollar ends at C$1.2926, or 77.36 U.S. cents * Bond prices lower across the maturity curve By Fergal Smith TORONTO, Aug 25 (Reuters) - The Canadian dollar edged slightly higher against the greenback on Thursday, trading in a narrow range before the start of a gathering in Jackson Hole, Wyoming, of central bankers from around the world, as higher oil prices offset robust U.S. data. Investors are awaiting clues from Jackson Hole on the U.S. interest rate outlook, with the focus on Friday's keynote speech by Federal Reserve Chair Janet Yellen. "The market is having a tough time trying to read through what seems to be a lack of a unified voice on the Fed," said Mazen Issa, senior fx strategist at TD Securities. Bank of Canada Governor Stephen Poloz is attending the annual economic policy symposium in Jackson Hole but will not have a speaking role, a spokesperson for the central bank told Reuters. The Canadian dollar ended at C$1.2926 to the greenback, or 77.36 U.S. cents, slightly stronger than Wednesday's close of C$1.2930, or 77.34 U.S. cents. The currency's strongest level of the session was C$1.2899, while its weakest was C$1.2940. Data showed U.S. core capital goods orders rose the most in six months, offering a tentative sign that a downturn in U.S. business spending is starting to ease, which may be good news for Canada's exporters. If U.S. capital expenditure is picking up it should feed into higher Canadian exports, Issa said. Weak U.S. business investment has hampered a long-awaited pick-up in growth of Canada's non-energy exports, economists say, while a weaker Canadian dollar has not helped exports as much as expected. U.S. crude oil futures settled 56 cents higher at $47.33 a barrel, although gains were pared after a Reuters interview with the Saudi Energy Minister that cast doubts on any OPEC output freeze. Canadian government bond prices were lower in sympathy with Treasuries, pressured by the solid U.S. data. The two-year bond dipped 3 Canadian cents to yield 0.589 percent and the benchmark 10-year declined 23 Canadian cents to yield 1.062 percent. (Reporting by Fergal Smith; Editing by Meredith Mazzilli and James Dalgleish)
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