CANADA FX DEBT-C$ at 1-week low as investors embrace greenback
* Canadian dollar at C$1.0971 or 91.15 U.S. cents * Bond prices lower across the maturity curve * Fed minutes add to pressure on loonie (Adds details and quote; updates prices) By Leah Schnurr TORONTO, Aug 20 (Reuters) - The Canadian dollar weakened against the greenback on Wednesday, hitting its lowest level in more than a week, as broad U.S. dollar strength picked up after minutes showed the Federal Reserve was surprised by how quickly the U.S. labor market is healing. Despite some day-to-day swings, the loonie has largely traded within a range since the end of July, though the currency pairing was approaching the top end of that band. Analysts expect the currency to see further weakness as optimism over the U.S. economic recovery will likely prompt investors to continue to favor the greenback. Still, the release of the minutes from the Fed's most recent policy meeting showed that despite the improvement in the labor market, Fed policymakers did not want to bring forward a planned interest rate hike until the recovery looks more convincing. "The market came into the minutes expecting them to be hawkish. They were maybe slightly so, but certainly not any more than the market expected," said Greg Anderson, global head of foreign exchange strategy at BMO Capital Markets in New York. "I think it was just confirmation and an excuse to buy the (U.S.) dollar, and the market wanted to do that anyway." The Canadian dollar ended the North American session at C$1.0971 to the greenback, or 91.15 U.S. cents, weaker than Tuesday's close of C$1.0943, or 91.38 U.S. cents. The U.S. dollar-Canadian dollar pairing faces technical resistance around C$1.10, and that level looks like it will be tested over the next several days, said Anderson. The loonie saw little reaction earlier in the day to a report that showed Canadian wholesale trade rose more than expected in June. With a light economic calendar, investors were looking ahead to inflation and retail sales reports on Friday as the main domestic events of the week. Focus was also on the meeting of policymakers and economists in Jackson Hole, Wyoming, at the end of the week, with Fed Chair Janet Yellen due to give a speech on Friday. Canadian government bond prices were lower across the maturity curve, with the two-year off 3-1/2 Canadian cents to yield 1.091 percent and the benchmark 10-year down 23 Canadian cents to yield 2.102 percent. (Editing by Leslie Adler)
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