CANADA FX DEBT-C$ flat as markets await Fed rate-hike signals
* Canadian dollar at C$1.2311 or 81.23 U.S. cents * Bond prices mixed across the maturity curve TORONTO, June 17 (Reuters) - The Canadian dollar was flat against the greenback on Wednesday despite stronger oil prices and an upswing in domestic wholesale trade data as markets awaited an interest-rate decision and statement from the U.S. Federal Reserve later in the day. Canadian wholesale trade jumped by 1.9 percent in April from March, far more than the 0.3 percent forecast, erasing some declines early in the year. Market participants will be parsing the Fed statement for clues on when the central bank will raise interest rates. Policymakers are expected to signal a hike will come sometime this year. * At 9:27 a.m. EDT (1327 GMT), the Canadian dollar was at C$1.2311 to the greenback, or 81.23 U.S. cents, little changed from the Bank of Canada's official close of C$1.2312, or 81.22 U.S. cents, on Tuesday. * The currency's strongest level of the session was C$1.2284, while its weakest was C$1.2333. * The Fed decision is due at 2 p.m. EDT (1800 GMT). * Figures from the U.S. Energy Information Administration are expected to show that U.S. crude stocks fell for a seventh consecutive week, while an expected fall in production due to the relatively high cost of producing shale has also supported prices for oil, a major Canadian export. * U.S. crude prices were up 1.87 percent at $61.09 a barrel, while Brent crude added 1.77 percent to $64.83. * The Canadian dollar, which was underperforming most of its key currency counterparts, is expected to trade between C$1.2275 and C$1.2375 against the U.S. dollar on Wednesday, according to RBC Capital Markets. * Canadian government bond prices were mixed across the maturity curve with longer-term bonds falling. The two-year price was down 2 Canadian cents to yield 0.617 percent and the benchmark 10-year fell 23 Canadian cents to yield 1.763 percent. * The Canada-U.S. two-year bond spread was -9.3 basis points, while the 10-year spread was -57.6 basis points. (Reporting by Solarina Ho; Editing by Peter Galloway)
© Thomson Reuters 2017 All rights reserved.