CANADA FX DEBT-C$ edges higher ahead of BoC rate announcement

* C$ rises to C$1.0338 to the U.S. dollar

* Bank of Canada to make rate announcement on Tuesday

* Bond prices higher across curve

TORONTO, Oct 19 (Reuters) - Canada's dollar was slightly
higher early on Monday given a pullback in the U.S. currency,
but its gain was limited ahead Bank of Canada interest rate
announcement expected in the next session.

The Bank of Canada is expected keep interest rates steady
at record lows and tinker with its economic forecasts as it
waits for firmer evidence of the recovery when it makes the
announcement on Tuesday. [ID:nN16310648]

"We had the (U.S.) dollar, which was stronger, and then it
seems to be losing some of its momentum heading into the start
of trading," said David Watt, senior currency strategist at RBC
Capital Markets in Toronto. "But the Bank of Canada is up this
week and event risk is limiting any of the Canadian dollar's
gains."

At 7:25 a.m. (1125 GMT), the Canadian unit CAD= was at
C$1.0338 to the U.S. dollar, or 96.73 U.S. cents, up from
C$1.0382 to the U.S. dollar, or 96.32 U.S. cents, at Friday's
close.

Domestic bond prices were higher across the curve.
(Reporting by Frank Pingue; Editing by Padraic Cassidy)