October 30, 2018 / 1:19 PM / 22 days ago

CANADA FX DEBT-C$ steadies against firmer greenback ahead of Poloz testimony

    * Canadian dollar near flat against the greenback
    * U.S. oil prices fall 1.5 percent
    * Canadian bond prices fall across a steeper yield curve

    TORONTO, Oct 30 (Reuters) - The Canadian dollar was little
changed against its broadly stronger U.S. counterpart on
Tuesday, as oil prices declined and ahead of comments by Bank of
Canada Governor Stephen Poloz that could offer fresh clues on
the outlook for interest rates.
    Poloz will testify to legislators this afternoon about last
week's decision to raise its key interest rate by 25 basis
points to 1.75 percent.             
    The central bank, which has hiked five times since July
2017, says the economy is working at full capacity and no longer
needs stimulus. Money markets expect another rate increase as
soon as January.                
    The price of oil, one of Canada's major exports, was
depressed by concerns that the trade dispute between the United
States and China will dent economic growth and by signs of
rising global supply despite upcoming sanctions against Iran.
            
    U.S. crude        prices were down 1.5 percent at $66.06 a
barrel.
    Worries about an escalation of the Sino-U.S. trade war and
more signs the United States economy is outperforming rivals,
helped boost the U.S. dollar, which notched a new 2 1/2-month
high against a basket of currencies. Weak euro zone growth
knocked the single currency lower.             
    At 8:59 a.m. (1259 GMT), the Canadian dollar          was
trading nearly unchanged at 1.3136 to the greenback, or 76.13
U.S. cents.
    The currency, which on Friday touched 1.3160, its strongest
level in more than six weeks, traded in a range of 1.3102 to
1.3145.
    The steady profile for the loonie also comes ahead of
Canada's gross domestic product data for August, due on
Wednesday, and the September jobs report and August trade data
due on Friday.
    Canadian government bond prices were lower across a steeper
yield curve in sympathy with U.S. Treasuries. The two-year
           fell 4 Canadian cents to yield 2.283 percent and the
10-year             declined 21 Canadian cents to yield 2.421
percent.

 (Reporting by Fergal Smith; Editing by David Gregorio)
  
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