* C$ lower at 97.59 U.S. cents
* Bond prices lower across curve
* Market awaits commentary from Canadian central bankers
TORONTO, Oct 26 (Reuters) - The Canadian dollar retreated
against a firmer greenback on Tuesday as investors turned wary
on uncertainty about the extent of further quantitative easing
measures the U.S. Federal Reserve may announce next week.
That uncertainty also weakened global stocks, and U.S.
stock index futures pointed to a lower open. [FRX/]
The reaction underscores how important the prospect of more
Fed asset-buying has become to financial markets. The market
expects the Fed to ease monetary policy through quantitative
easing, or printing money to buy securities.
"It's (the Canadian dollar) getting dragged around by the
nose on general U.S. dollar sentiment," said John Curran,
senior vice president at CanadianForex, a commercial foreign
exchange dealing firm.
"The risk remains that the U.S. dollar strengthens into
next week's U.S. election and (Federal Open Market Committee)
meeting as the market locks in profits from long standing U.S.
dolalr short positions," he added.
At 8:55 a.m. (1255 GMT), the Canadian dollar
at C$1.0247 to the U.S. dollar, or 97.59 U.S. cents, down from
Monday's finish at C$1.0203 to the U.S. dollar, or 98.01 U.S.
The price of oil, a key Canadian export, was slightly lower
at around $82 a barrel, while gold and copper were also weaker.
[O/R] [GOL/] [MET/L]
Curran said a key focal point will be comments by Bank of
Canada Governor Mark Carney and Senior Deputy Governor Tiff
Macklem as they testify to the Standing Committee on Finance
later in the day. The two central bankers are likely to focus
on the projections outlined in their dovish Monetary Policy
Report released last week.
Canadian government bonds prices were lower across the
curve with the two-year bond
down 4 Canadian cents
to yield 1.408 percent, while the 10-year bond was
off 26 Canadian cents to yield 2.775 percent.
(Editing by Padraic Cassidy)