CANADA FX DEBT-C$ up ahead of Bank of Canada rate decision
* C$ a touch higher, sticks above 90 U.S. cents
* Bank of Canada expected to leave rates steady
* Bond prices steady at mostly unchanged levels
By Frank Pingue
TORONTO, July 21 (Reuters) - Canada's currency was a touch higher versus the U.S. dollar on Tuesday ahead of a Bank of Canada interest rate decision that may include renewed economic forecasts and mention of the domestic currency.
At 7:45 a.m. (1145 GMT) the Canadian unit was at C$1.1046 to the U.S. dollar, or 90.53 U.S. cents, up from C$1.1068 to the U.S. dollar, or 90.35 U.S. cents, at Monday's close.
While higher, the move paled in comparison to the domestic currency's recent charge, which included a rise on Monday to its highest level since June 12 before backing off slightly.
"It's not getting any real direction from asset markets, which has been obviously the main driver recently," said Adam Cole, global head of FX strategy at RBC Capital Markets in London. "It's waiting for the BoC I think primarily, and there is some uncertainty over whether or not they will mention the currency in the statement in particular."
The central bank is expected to stick to its conditional pledge and keep rates at the current near-zero level when it releases its decision at 9:00 a.m., according to a recent Reuters poll of Canada's primary dealers. [ID:nN17484031]
But plenty of attention will be directed at the statement that accompanies the decision to see if the central bank offers an updated view on the Canadian dollar.
In its June statement, the bank said a strong currency could offset positive factors such as improved financial conditions and commodity prices. [ID:nN0479627]
The Canadian dollar is up about 18 percent since it tumbled to a four-year low of C$1.3066 to the U.S. dollar, or 76.53 U.S. cents, in early March.
Canadian bond prices were hovering around the break-even level ahead of the Bank of Canada announcement. (Editing by Padraic Cassidy)
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