CANADA FX DEBT-C$ makes gains one day after six-week low
(Adds strategist comment, updates prices) * Canadian dollar settles at C$1.3308, or 75.14 U.S. cents * Bond prices dip across the maturity curve By Alastair Sharp TORONTO, Nov 17 (Reuters) - The Canadian dollar firmed against a broadly stronger U.S. dollar on Tuesday, recovering from a six-week low hit on Monday even as crude oil prices fell. The loonie, as the Canadian currency is colloquially known, traded in a much tighter range than had been seen in the three prior sessions, suggesting traders were taking a pause. "We're grinding higher here, but it's not a straight line," said Shaun Osborne, chief currency strategist at Bank of Nova Scotia. "It's not too surprising that we've seen a bit of consolidation." The Canadian dollar settled at C$1.3308 to the greenback, or 75.14 U.S. cents, stronger than the Bank of Canada's official close on Monday of C$1.3325, or 75.05 U.S. cents. The currency's strongest level of the session was C$1.3298, while its weakest level was C$1.3345. Crude oil, a major Canadian export, had rallied on Monday on heightened geopolitical tensions following the Paris attacks but traded lower on Tuesday as focus returned to global oversupply. The U.S. Federal Reserve is scheduled to release the minutes of its October monetary policy meeting on Wednesday, which should shed light on the some of the changes in the U.S. central bank's statement. Against the euro, the Canadian dollar reached its strongest level since July after dovish remarks from Peter Praet, a member of the European Central Bank's Executive Board, weighed on the single currency. Canadian government bond prices were lower across the maturity curve, pressured by the rotation into stocks and U.S. inflation data that supported the view that the Fed will raise interest rates next month. The U.S. Labor Department said its Consumer Price Index increased 0.2 percent in October, reversing September's 0.2 percent drop, while the so-called core CPI, which strips out food and energy costs, gained 0.2 percent after a similar rise the prior month. The two-year price was down 1.5 Canadian cents to yield 0.622 percent and the benchmark 10-year slipped 8 Canadian cents to yield 1.658 percent. U.S. crude prices settled down 2.6 percent to $40.67, while Brent crude lost 1.3 percent to $44.00. Copper prices plunged to their lowest in more than six years as fears about demand growth in top consumer China and a higher dollar fueled negative sentiment. The Quebec government said on Monday that its $1 billion investment in a partnership with Bombardier Inc will be financed through the government's annual borrowing program. (Additional reporting by Fergal Smith; Editing by Meredith Mazzilli and Diane Craft)
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