CANADA FX DEBT-C$ near flat as oil, greenback both firm
* Canadian dollar at C$1.3265 or 75.39 U.S. cents * Bond prices higher across the maturity curve (Adds details, quote, updates prices, previous TORONTO) By Leah Schnurr OTTAWA, Nov 10 (Reuters) - The Canadian dollar was little changed against the greenback on Tuesday, caught between a modest pick-up in oil prices and a stronger U.S. dollar on growing expectations the Federal Reserve will begin raising interest rates this year. Weak Chinese inflation data fed concern about the global growth outlook and added pressure on the currency. The loonie dropped 1 percent on Friday after surprisingly strong U.S. jobs data bolstered the case for the Fed raising rates in December, which some in the market had been questioning. The Canadian dollar has edged slightly higher since then and will likely continue to consolidate this week with traders focused on U.S. data as they try to gauge what the Fed will do, said Scott Smith, senior market analyst at Cambridge Global Payments in Toronto. "That's the elephant in the room right now and the market is coming around to the idea that a December rate hike is fairly solidified," he said. "The loonie is caught in the crosshairs to some extent with the strength in the U.S. dollar that we're seeing and oil catching a little bit of traction today but having a hard time asserting itself north of $45." The Canadian dollar ended the North American session at C$1.3265 to the greenback, or 75.39 U.S. cents, slightly firmer than the Bank of Canada's official close of C$1.3275, or 75.33 U.S. cents on Monday. China's consumer price index inflation cooled more than anticipated in October, following disappointing trade data over the weekend. U.S. crude settled up 34 cents at $44.21 a barrel after a report from the International Energy Agency noted a sharp drop in oil investment. Medium-term investors will also take note of a potential acquisition by Canadian Pacific Railway Ltd of U.S. peer Norfolk Southern Corp, after news of preliminary merger talks emerged on Monday. Canadian government bond prices were higher across the maturity curve, with the two-year price up 2.5 Canadian cents to yield 0.66 percent and the benchmark 10-year rising 9 Canadian cent to yield 1.708 percent. The bond market closed early ahead of Wednesday's national Remembrance Day holiday. The Canada-U.S. two-year bond spread was -21.8 basis points, while the 10-year spread was -63.6 basis points. (Additional reporting by Fergal Smith in Toronto; Editing by James Dalgleish)
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