CANADA FX DEBT-C$ at 7-week low after strong U.S. GDP data

* Canadian dollar at C$1.0901 or 91.73 U.S. cents
    * Bond prices lower across the maturity curve

 (Adds details on market activity, quotes, updates prices)
    By Leah Schnurr
    TORONTO, July 30 (Reuters) - The Canadian dollar extended
its stampede downward and hit a seven-week low against the
greenback on Wednesday after data showed a bigger-than-expected
pickup in U.S. economic growth, lifting the U.S. dollar to the
detriment of the loonie.
    The Canadian dollar has fallen sharply in three of the last
four sessions, dropping more than 1 percent since last Friday.
The swift descent has shaken the loonie out of the tight range
it traded in for half of July.
    The loonie broke through the key C$1.09 level during
Wednesday's session, the latest in a series of resistance points
it has pierced. The currency also broke through its 100-day
moving average at C$1.0894.
    The U.S. gross domestic product report was the day's biggest
catalyst, showing the economy expanded at a 4 percent annual
rate in the second quarter as it recovered from a decline in the
first three months of the year. 
    "With the U.S. dollar being favored right across the board,
I imagine U.S. dollar-Canadian dollar is likely going to
continue to gravitate toward C$1.10," said Ken Wills, currency
strategist and broker at CanadianForex in Toronto.
    In the near term, the loonie could catch its breath around
the C$1.0850 to C$1.09 range, he said.
    The Canadian dollar ended the North American
session at C$1.0901 to the greenback, or 91.73 U.S. cents,
weaker than Tuesday's close of C$1.0859, or 92.09 U.S. cents.
    The loonie recaptured some lost ground after a monetary
policy statement released by the U.S. Federal Reserve was not as
hawkish as some in the market had expected.
    While the Fed upgraded its assessment of the economy,
policymakers reaffirmed that they are in no rush to raise
interest rates. 
    Some of the market's move in the morning was likely due to
some investors getting their hopes up for a clear change in tone
by the Fed, Wills said.
    "There was a few tweaks here and there in the statement that
point toward normalcy, but I'd be cautious to say it's a hawkish
tone at this point," he added.
    Canadian data released earlier in the day showed industrial
product prices edged down in June, but the report was eclipsed
by the U.S. data. 
    Investors were turning their attention to Thursday's report
on Canadian economic growth for May. Growth is expected to have
picked up by 0.3 percent from April. A figure above forecasts
could provide the loonie with some relief, analysts said.
    Canadian government bond prices were lower across the
maturity curve, with the two-year down 5-1/2 Canadian
cents to yield 1.109 percent. The benchmark 10-year 
was down 59 Canadian cents to yield 2.158 percent, coming off
the previous day's lowest level for yield in more than a year.

 (Editing by Peter Galloway)