* Canadian dollar at C$1.0762 or 92.92 U.S. cents
* Bond prices mostly lower across the maturity curve
By Leah Schnurr
TORONTO, July 16 The Canadian dollar was little
changed against the greenback on Wednesday, with investors
unwilling to take aggressive positions ahead of a monetary
policy statement from the Bank of Canada due later in the
The announcement from the central bank will be the key
domestic event of the week and has been much anticipated by
markets since surprisingly strong inflation data released last
Investors will be watching to see how the Bank of Canada
addresses the inflation environment and if there is any mention
of recent strength in the loonie.
Overall, though, analysts expect the bank will likely stick
to its neutral tone, particularly after last week's
disappointing jobs report for June. Rates are widely forecast to
remain at 1 percent.
"What's essentially interesting about today's Bank meeting
is how they will potentially change their messaging based on
what we've seen in the data over the past couple months," said
Greg Moore, senior currency strategist at Royal Bank of Canada
"Inflation that surprised to the upside has been the main
thing a lot of people have been pointing to, but low growth is
another issue that Governor Poloz and the Bank of Canada are
likely to emphasize a bit more today."
The Canadian dollar was at C$1.0762 to the
greenback, or 92.92 U.S. cents, a tad weaker than Tuesday's
close of C$1.0758, or 92.95 U.S. cents.
The central bank will release its statement at 10:00 am ET
(1400 GMT) and will give its updated projection for inflation
and economic growth at the same time. The releases will be
followed by a press conference by Governor Stephen Poloz.
If the Bank of Canada does maintain its neutral to dovish
message, that would be a negative for the Canadian dollar and
could push the currency into the low C$1.08s, said Moore.
After a rally of 1.6 percent through June, the loonie's
momentum stalled last week as it was hit hard by a report that
showed the economy lost jobs last month.
The loonie saw little reaction to data earlier on Wednesday
that showed the value of Canadian factory sales jumped by 1.6
percent in May, more than economists had expected.
Canadian government bond prices were mostly lower across the
maturity curve, with the two-year down half a
Canadian cent to yield 1.102 percent and the benchmark 10-year
off 1 Canadian cent to yield 2.216 percent.
(Editing by Nick Zieminski)