May 27, 2019 / 2:03 PM / 4 months ago

CANADA FX DEBT-Loonie trades in a narrow range ahead of BoC rate decision

    * Canadian dollar near flat at 1.3440 to the greenback
    * Price of U.S. oil falls 0.5%
    * Canada's 10-year hits a nearly two-month low at 1.602% 

    TORONTO, May 27 (Reuters) - The Canadian dollar was little
changed against its U.S. counterpart on Monday, trading in a
narrow range ahead of a Bank of Canada interest rate decision
later in the week.
    At 9:26 a.m. (1326 GMT), the Canadian dollar          was
trading nearly unchanged at 1.3440 to the greenback, or 74.40
U.S. cents. The currency, which gained 0.2% last week, traded
between 1.3430 and 1.3453.
    The narrow range for the currency came as U.S. markets were
closed for the Memorial Day holiday.
    The Bank of Canada is widely expected to leave on Wednesday
its benchmark interest rate unchanged at 1.75% as it weighs
developments in household spending, oil markets and global trade
policy.             
    The central bank, which has been on hold since October after
having tightened by 125 basis points since July 2017, has
projected that the economy barely grew in the first three months
of the year. Canada's first quarter gross domestic product data
is due on Friday. 
    The price of oil, one of Canada's major exports, was weighed
by concerns about the impact on the global economy of the trade
dispute between the United States and China. U.S. crude oil
futures        were down 0.5% at $58.33 a barrel. 
    Still, speculators have cut their bearish bets on the
Canadian dollar to the lowest since March, data from the U.S.
Commodity Futures Trading Commission and Reuters calculations
showed on Friday. As of May 21, net short positions had fallen
to 42,236 contracts from 47,588 in the prior week.             
    Canadian government bond prices were higher across a flatter
yield curve. The 10-year             gained 11 Canadian cents to
yield 1.602%, its lowest yield since March 29.

 (Reporting by Fergal Smith; Editing by Andrea Ricci)
  
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