CANADA FX DEBT-C$ stabilizes while investors await Fed decision

* Canadian dollar at C$1.3175 or 75.90 U.S. cents
    * Bond prices higher across the maturity curve

    OTTAWA, July 27 (Reuters) - The Canadian dollar strengthened
modestly against the greenback on Wednesday, stabilizing after a
recent string of declines as investors awaited data that could
influence oil prices, as well as an interest rate decision from
the U.S. Federal Reserve.
    * U.S. crude prices were up 0.28 percent at $43.04 a
barrel after U.S. industry data underscored concerns of
persistent oversupply. U.S. government oil stocks data, which is
closely watched by investors, was due at 10:30 a.m. EDT (1430
    * The Federal Reserve is expected to hold interest rates
steady when it releases its statement at 2:00 p.m. EDT (1800
GMT), putting off any potential hike until later in the year.
    * At 9:05 a.m. EDT (1305 GMT), the Canadian dollar 
was trading at C$1.3175 to the greenback, or 75.90 U.S. cents,
slightly stronger than the Bank of Canada's official close of
C$1.3189, or 75.82 U.S. cents.
    * The currency touched its weakest level in nearly four
months earlier in the week. The loonie has lost about 2 percent
in July as the price of oil, a major export for Canada, has
drifted lower.
    * The Canadian economic calendar is light until Friday when
gross domestic product will be released for May. Growth is
forecast to have declined 0.4 percent in the month as the
economy was hurt by wildfires in Alberta. 
    * Canadian government bond prices were higher across the
maturity curve, with the two-year price up 1 Canadian
cent to yield 0.59 percent and the benchmark 10-year 
rising 21 Canadian cents to yield 1.101 percent.
    * The Canada-U.S. two-year bond spread was -17.2 basis
points, while the 10-year spread was -45.6 basis points.

 (Reporting by Leah Schnurr; Editing by Nick Zieminski)