* 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 unitwas 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)
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