CANADA FX DEBT-C$ slips after Keystone bill fails to pass
(Adds new comment, Fed details, closing figures) * Canadian dollar at C$1.1351, or 88.10 U.S. cents * Bond prices fall across the maturity curve By Solarina Ho TORONTO, Nov 19 (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Wednesday after the U.S. Senate narrowly failed to pass a bill late on Tuesday that would have approved construction of the controversial Keystone XL pipeline. The currency briefly pared losses on a weaker U.S. dollar after the Federal Reserve's October meeting minutes showed policymakers had wrestled with whether addressing the global economic slowdown and market volatility would overstate its concerns. The overall statement did not change market expectations for when the Fed may hike interest rates next year, however, and the Canadian dollar settled back to earlier session levels. "A snooze would be a good way to describe it," said Amo Sahota, director at Klarity FX in San Francisco. The Canadian dollar, which analysts expect will continue to trend weaker against the greenback, finished the session at C$1.1351, or 88.10 U.S. cents, down from Tuesday's close of C$1.1299, or 88.50 U.S. cents. "We started getting a slight weakness in the Canadian dollar late yesterday once the Senate vote on the Keystone pipeline came out, said Sahota. "I think that just gave the market an excuse - a psychological one ... that had a slight knock on the marketplace." The bill for the TransCanada Corp pipeline fell just short of the 60 votes needed for passage, and new legislation is likely to be introduced next year. The pipeline, if approved, would transport more than 800,000 barrels per day of oil from the Alberta oil sands to the U.S. Gulf Coast. Weaker oil prices added further pressure on the currency. The Canadian price index for October, due on Friday, will be the next focal point for market players. Forecasters expect inflation to rise to 2.1 percent from 2 percent, and core inflation to remain steady at 2.1 percent. Canadian government bond prices were mostly lower across the maturity curve, with the two-year down 3 Canadian cents to yield 1.018 percent and the benchmark 10-year falling 29.5 Canadian cents to yield 2.030 percent. (Reporting by Solarina Ho; Editing by Lisa Von Ahn and Tom Brown)
© Thomson Reuters 2017 All rights reserved.