CANADA FX DEBT-C$ firms against weaker greenback ahead of Trump address

    * Canadian dollar at C$1.2315, or 81.20 U.S. cents
    * Bond prices mixed across a steeper yield curve
    * Oil prices fall nearly 1 percent

    TORONTO, Jan 30 (Reuters) - The Canadian dollar strengthened
against its U.S. counterpart on Tuesday as the greenback broadly
fell ahead of U.S. President Donald Trump's State of the Union
address and an interest rate decision by the Federal Reserve.
    At 9:13 a.m. EST (1413 GMT), the Canadian dollar         
was trading 0.2-percent higher at C$1.2315 to the greenback, or
81.20 U.S. cents.
    The currency traded in a range of C$1.2310 to C$1.2378. Last
week, the loonie touched its strongest in more than four months
at C$1.2283.
    Attention on Trump's address later in the day was mostly on
his views on an infrastructure overhaul and trade, with the
future of the North American Free Trade Agreement hanging in the
    Trump's trade chief rejected Canadian proposals for
unblocking NAFTA modernization talks on Monday but pledged to
seek "breakthroughs" by late February, easing concerns that
Washington would soon withdraw from the trilateral pact.
    Fed Chair Janet Yellen was expected to keep the central bank
on course for more interest rate rises at her final meeting in
charge. The rate decision is due on Wednesday.
    World stocks were stuck in their biggest two-day dive in
almost six months and the price of oil, one of Canada's major
exports, also fell, as nerves about rising global borrowing
costs cooled financial markets' euphoric start to the year.
    U.S. crude        prices were down nearly 1 percent at
$64.93 a barrel.             
    Canadian government bond prices were mixed across a steeper
yield curve in sympathy with U.S. Treasuries. The two-year
           was flat to yield 1.825 percent and the benchmark
10-year             declined 12 Canadian cents to yield 2.296
    On Monday, the 10-year yield touched its highest intraday
since September 2014 at 2.314 percent.
    Canadian gross domestic product data for November is due on
Wednesday. The economy is forecast to have grown by 0.4 percent,
a Reuters poll shows, regaining momentum after pausing in

 (Reporting by Fergal Smith; Editing by Nick Zieminski)