CANADA FX DEBT-C$ slips; investors eye U.S. Fed, Obama

Wed Jan 27, 2010 9:28am EST
 
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 * Slips to C$1.0649 per US$, or 93.91 U.S. cents
 * Investors await U.S. Fed decision, Obama address
 * Bond prices flat, track U.S. Treasuries
 By Jennifer Kwan
 TORONTO, Jan 27 (Reuters) - The Canadian dollar sagged on
Wednesday, but mixed commodity and equity markets provided
little direction and investors were reluctant to make big bets
ahead of an interest rate decision by the U.S. Federal
Reserve.
 The price for oil, a key Canadian export, was little
changed at around $74.85 a barrel [O/R], while gold prices were
slightly softer. [GOL/]
 Global stock markets fell on Wednesday, hitting their
lowest in two months as investors fretted about a monetary
squeeze from central banks around the world and also the impact
of tightening U.S. banking regulation. [MKTS/GLOB] U.S. stock
index futures pointed to a higher open. [.N]
 At 8:58 a.m. (1358 GMT), the Canadian dollar was at
C$1.0649 to the U.S. dollar, or 93.91 U.S. cents, slightly down
from Tuesday's finish at C$1.0625 to the U.S. dollar, or 94.12
U.S. cent.
 Market watchers said the policy and political landscape
would likely keep investors cautious. Major events on Wednesday
include the rate announcement by the U.S. central bank as well
as U.S. President Barack Obama's State of the Union address
later in the evening.
 "It is fairly quiet this morning. This market is waiting
for the FOMC meeting and probably the State of the Union
address," said Jon Gencher, director of foreign exchanges sales
at BMO Capital Markets.
 Government bond prices were largely flat, in lockstep with
U.S. Treasuries, which were little changed as investors were on
edge ahead of the outcome of the Federal Reserve's
interest-rate meeting and an auction of five-year paper. [US/]
 (Editing by Jeffrey Hodgson)