CANADA FX DEBT-C$ turns lower as risk appetite fades
* C$ sheds bulk of previous session's gain
* Market awaits Bank of Canada MPR report
* Bond prices lower across the curve
By Frank Pingue
TORONTO, Oct 22 (Reuters) - Canada's currency fell versus the U.S. dollar on Thursday as traders lost their appetite for higher-risk currencies ahead of the Bank of Canada Monetary Policy Report while global stocks fell.
The sour mood on equity markets was caused by disappointing corporate results and Chinese data that showed the economy rose 8.9 percent in the third quarter, which fell short of some of the more optimistic predictions. [ID:nSP452724]
At 10:30 a.m. (1430 GMT), the Bank of Canada will release it Monetary Policy Report, followed shortly by a news conference with Governor Mark Carney.
Earlier this week the central bank left its key interest rate steady at a record low 0.25 percent and warned that a strong domestic currency was undermining economic recovery.
"The Bank of Canada's Monetary Policy Report is likely to reaffirm that the Canadian dollar is a significant headwind for the recovery," said Sal Guatieri, senior economist at BMO Capital Markets. "And shaky global equity markets have people piling into the greenback again."
At 7:35 a.m. (1135 GMT), the Canadian unit was at C$1.0500 to the U.S. dollar, or 95.24 U.S. cents, down from C$1.0460 to the U.S. dollar, or 95.60 U.S. cents, at Wednesday's close.
Domestic bond prices were lower across the curve, mirroring the move in the bigger U.S. Treasury market where investors awaited details of next week's debt supply. (Editing by Theodore d'Afflisio)
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