CANADA FX DEBT-C$ at 7-week low after strong U.S. GDP data
* Canadian dollar at C$1.0901 or 91.73 U.S. cents * Bond prices lower across the maturity curve (Adds details on market activity, quotes, updates prices) By Leah Schnurr TORONTO, July 30 (Reuters) - The Canadian dollar extended its stampede downward and hit a seven-week low against the greenback on Wednesday after data showed a bigger-than-expected pickup in U.S. economic growth, lifting the U.S. dollar to the detriment of the loonie. The Canadian dollar has fallen sharply in three of the last four sessions, dropping more than 1 percent since last Friday. The swift descent has shaken the loonie out of the tight range it traded in for half of July. The loonie broke through the key C$1.09 level during Wednesday's session, the latest in a series of resistance points it has pierced. The currency also broke through its 100-day moving average at C$1.0894. The U.S. gross domestic product report was the day's biggest catalyst, showing the economy expanded at a 4 percent annual rate in the second quarter as it recovered from a decline in the first three months of the year. "With the U.S. dollar being favored right across the board, I imagine U.S. dollar-Canadian dollar is likely going to continue to gravitate toward C$1.10," said Ken Wills, currency strategist and broker at CanadianForex in Toronto. In the near term, the loonie could catch its breath around the C$1.0850 to C$1.09 range, he said. The Canadian dollar ended the North American session at C$1.0901 to the greenback, or 91.73 U.S. cents, weaker than Tuesday's close of C$1.0859, or 92.09 U.S. cents. The loonie recaptured some lost ground after a monetary policy statement released by the U.S. Federal Reserve was not as hawkish as some in the market had expected. While the Fed upgraded its assessment of the economy, policymakers reaffirmed that they are in no rush to raise interest rates. Some of the market's move in the morning was likely due to some investors getting their hopes up for a clear change in tone by the Fed, Wills said. "There was a few tweaks here and there in the statement that point toward normalcy, but I'd be cautious to say it's a hawkish tone at this point," he added. Canadian data released earlier in the day showed industrial product prices edged down in June, but the report was eclipsed by the U.S. data. Investors were turning their attention to Thursday's report on Canadian economic growth for May. Growth is expected to have picked up by 0.3 percent from April. A figure above forecasts could provide the loonie with some relief, analysts said. Canadian government bond prices were lower across the maturity curve, with the two-year down 5-1/2 Canadian cents to yield 1.109 percent. The benchmark 10-year was down 59 Canadian cents to yield 2.158 percent, coming off the previous day's lowest level for yield in more than a year. (Editing by Peter Galloway)
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