CANADA FX DEBT-C$ steadies ahead of the expected Fed rate cut

 (Adds strategist quote and details throughout, updates prices)
    * Canadian dollar nearly unchanged against the greenback
    * U.S. crude oil prices rise 2.1%
    * Bond prices move lower across the yield curve

    By Levent Uslu
    TORONTO, July 30 (Reuters) - The Canadian dollar was little
changed on Tuesday against its U.S. counterpart, trading in a
narrow range, as the currency lacked direction ahead of the
expected Federal Reserve interest rate cut this week.
    Money markets are convinced the Fed will cut the key
benchmark rate by 25 basis points, but it remains to be seen
whether this is going to be a one-off cut or whether more cuts
will follow.             
    The Bank of Canada left its benchmark interest rate
unchanged at 1.75% this month but highlighted the risks that
trade wars pose to the global economy.             
    Canada's gross domestic product data for May is due on
Wednesday, with a Reuters poll forecasting a 0.1% increase,
which could help guide expectations for the direction of
interest rates.
    "It (the reason of flatness in the loonie) is a bit of
uncertainty with respect to what the Fed statement is going to
look like tomorrow, and again we do have important economic data
coming out of Canada as well," said Bipan Rai, executive
director and North America head of FX strategy at CIBC capital
    At 2:34 p.m. (1834 GMT), the Canadian dollar          was
trading nearly unchanged at 1.3159 to the greenback, or 75.99
U.S. cents. The currency traded in a range of 1.3152 to 1.3191.
    Meanwhile, the price of oil, one of Canada's major exports,
rose on optimism the U.S. Federal Reserve will cut interest
rates this week for the first time in more than 10 years,
boosting demand expectations in the world's biggest oil user.
    U.S. crude oil futures        settled 2.1% up at $58.05 a
    Canadian government bond prices were lower across the yield 
curve, with the two-year            down 5.5 Canadian cents to
yield 1.518% and the 10-year             falling 12 Canadian
cents to yield 1.489%.
    The gap between Canada's 10-year yield and its U.S.
equivalent widened by 0.3 basis point to a spread of 57.6 basis
points in favor of the U.S. bond, the widest gap since June 21. 

 (Reporting by Levent Uslu)