CANADA FX DEBT-C$ weakens on softer oil prices, Fed in view this week

* Canadian dollar at C$1.1238 or 88.98 U.S. cents
    * Bond prices mixed

 (Adds details, quotes, changes byline, updates prices)
    By Leah Schnurr
    TORONTO, Oct 27 (Reuters) - The Canadian dollar weakened
modestly against the greenback on Monday, pressured by a decline
in oil prices and as investors were wary of taking aggressive
bets ahead of a meeting of Federal Reserve policymakers later in
the week.
    Analysts said that the loonie is likely to trade in a tight
range until the Fed's policy announcement at the conclusion of
its two-day meeting on Wednesday. The currency is also
consolidating from the more than five-year low it hit this
    While the Fed is expected to announce the end of its
bond-purchase program, the U.S. central bank will likely
reinforce its willingness to wait a while before raising
interest rates. 
    "Despite the worries about global growth that we saw the
last few weeks, I don't think there's a lot of impetus for the
Fed to push back the end of QE," said Scott Smith, senior market
analyst at Cambridge Mercantile Group in Calgary, referring to
the nickname for quantitative easing.
    "The communication will continue to be on the dovish side of
expectations, so I think they'll continue to have language in
there about interest rates being low for a considerable amount
of time in the future," said Smith.    
    The Canadian dollar ended the North American
session at C$1.1238, or 88.98 U.S. cents, slightly weaker than
Friday's close of C$1.1233 to the U.S. dollar, or 89.02 U.S.
    Smith expects the currency will trade between C$1.1200 and
the high C$1.12s until Wednesday.
    Oil prices recovered much of their earlier losses but U.S.
crude still settled down 1 cent at $81.00 a barrel after
Goldman Sachs slashed its 2015 oil price forecasts.
    At home, traders are looking ahead to testimony by Bank of
Canada Governor Stephen Poloz to the Senate banking committee on
Wednesday. His testimony had been scheduled for last week but
was canceled due to a gunman's attack on Parliament Hill.
    Canadian government bond prices were mixed, with the
two-year up half a Canadian cent to yield 1 percent.
The benchmark 10-year was unchanged and yielded
2.016 percent.

 (Editing by James Dalgleish)