CANADA FX DEBT-C$ steady in a quiet session as Fed, Keystone vote eyed
(Adds strategist's comment, details, closing figures) * Canadian dollar closes at C$1.1299, or 88.50 U.S. cents * Bond prices rise across the maturity curve By Solarina Ho TORONTO, Nov 18 (Reuters) - The Canadian dollar finished little changed against its U.S. counterpart in quiet trading on Tuesday as investors held off making bets ahead of Wednesday's release of minutes from the latest U.S. Federal Reserve policy meeting and with no major domestic economic data on tap until week's end. A key U.S. Senate vote on Tuesday on approving the Keystone XL oil pipeline project could move the commodities-linked Canadian dollar, but any impact was not expected to be lasting. The TransCanada Corp pipeline, if approved, would transport more than 800,000 barrels per day of oil from the Alberta oil sands to the U.S. Gulf Coast. Market participants will otherwise be looking at the details of the October Fed meeting for hints on whether low inflation could put next year's expected interest rate increase on hold. "The overarching theme is one of patience as we go into the Federal Reserve's minutes tomorrow. That's going to stand out as a key event, where we'll try to gauge the tone of the Fed," said David Tulk, chief Canada macro strategist at TD Securities, adding that the Fed's overall tone is likely to be more U.S. dollar positive. The Canadian dollar finished the session at C$1.1299 to the U.S. dollar, or 88.50 U.S. cents, steady with Monday's close of C$1.1296, or 88.53 U.S. cents. "It's been quiet so far this week. Volatility's been lower, volume's been lower. The Canadian dollar's taking the backseat a little bit," said David Bradley, director of foreign exchange trading at Scotiabank. "There's some cross activity going through as well ... which has been keeping us trapped in a bit of a range also." There is no major Canadian economic data on tap until Friday's consumer price index for October. Forecasters expect inflation to rise to 2.1 percent from 2 percent, and core inflation to remain steady at 2.1 percent. Canadian government bond prices rose across the maturity curve, with the two-year up half a Canadian cent to yield 1.003 percent, and the benchmark 10-year climbing 24 Canadian cents to yield 1.997 percent. (Reporting by Solarina Ho; Editing by Peter Galloway)
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