October 30, 2019 / 1:28 PM / 16 days ago

CANADA FX DEBT-Canadian dollar steadies ahead of Bank of Canada rate decision

    * Canadian dollar trades near flat against the greenback
    * Loonie trades in a range of 1.3073 to 1.3100
    * Price of U.S. oil was nearly unchanged
    * Canadian bond prices edge higher across the yield curve

    TORONTO, Oct 30 (Reuters) - The Canadian dollar was little
changed against its U.S. counterpart on Wednesday, trading in a
narrow range ahead of interest rate decisions on both sides of
the border that could see the Federal Reserve policy rate dip
below the Bank of Canada's.
    The Bank of Canada, which announces its policy decision at
10 a.m. (1400 GMT), is likely to keep its benchmark interest
rate on hold at 1.75% in its first policy announcement since
last week's federal election, despite signs that investors
seeking higher-yielding currencies are shifting more money into
Canadian dollars.                       
    The Fed will announce its interest rate decision later in
the day. It is expected to ease for the third time since July,
which could lower the range for its policy rate to below the
Bank of Canada's equivalent rate for the first time since
December 2016.                  
    At 9:02 a.m. (1302 GMT), the Canadian dollar          was
trading nearly unchanged at 1.3088 to the greenback, or 76.41
U.S. cents. The currency, which notched a three-month high on
Tuesday at 1.3043, traded in a narrow range of 1.3073 to 1.3100.
    Meanwhile, the U.S. dollar        rose against a basket of
major currencies after data showed that American economic growth
slowed less than expected in the third quarter.             
    U.S. crude oil futures        were little changed at $55.53
a barrel, held back by worries about a possible delay in
resolving the U.S.-China trade war. Oil is one of Canada's major
exports.                     
    Canadian government bond prices were higher across the yield
curve, with the two-year            up 2 Canadian cents to yield
1.697% and the 10-year             rising 14 Canadian cents to
yield 1.587%.
    On Monday, the 10-year yield touched its highest intraday
level since July 16 at 1.628%.

 (Reporting by Fergal Smith; editing by Jonathan Oatis)
  
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