CANADA FX DEBT-C$ strengthens a bit as gold stabilizes

Tue Jul 21, 2015 9:36am EDT
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* Canadian dollar at C$1.2989 or 76.99 U.S. cents

* Bond prices mixed across the maturity curve

TORONTO, July 21 (Reuters) - The Canadian dollar firmed against its U.S. counterpart on Tuesday as the greenback slipped after touching a three-month peak and gold prices stabilized after dropping on Monday, helping commodity-linked currencies such as Canada's.

Spot gold XAU= added more than 1 percent to $1,107.76 an ounce, recovering after a sharp drop. Still, returns on gold have fallen more than 40 percent over the last four years.

* At 9:22 a.m. EDT (1322 GMT), the Canadian dollar was at C$1.2989 to the U.S. dollar, or 76.99 U.S. cents, a touch stronger than the Bank of Canada's official close of C$1.2997, or 76.94 U.S. cents, on Monday.

* The loonie was trading between C$1.2974 and C$1.3013.

* This week will be light in terms of market-moving economic data in Canada and the United States, at least until Thursday, when Canada releases retail sales data for May.

* On the oil front, important for crude export-heavy Canada, oil prices steadied as the U.S. dollar edged off highs, but remained set for their biggest monthly drop since March in the face of a global supply glut. Brent September crude futures were down 6 cents at $56.59 a barrel. U.S. August crude futures, set to expire on Tuesday, fell 2 cents to $50.13.

* Canadian government bond prices were mixed across the maturity curve, with the two-year price flat to yield 0.431 percent and the benchmark 10-year falling 13 Canadian cents to yield 1.592 percent. (Reporting by Andrea Hopkins; Editing by Peter Galloway)