August 22, 2019 / 7:58 PM / a month ago

REFILE-CANADA FX DEBT-C$ pares earlier gains as risk appetite falls ahead of Fed conference

 (Corrects spelling of strategist's first name in fifth
paragraph)
    * Canadian dollar trades little changed against the
greenback
    * Canada's wholesale trade rose 0.6% in June from May
    * U.S. oil prices fall 0.6%
    * Bond prices move lower across the yield curve

    By Levent Uslu
    TORONTO, Aug 22 (Reuters) - The Canadian dollar steadied
against its U.S. counterpart on Thursday, trimming earlier gains
as investor appetite for risk decreased ahead of a Federal
Reserve central banking conference  this week.
    U.S. stocks were mixed on the first contraction in the
manufacturing sector in nearly a decade and uncertainty about
future interest rate cuts.
    Oil prices weakened as worries about the global economy
weighed. U.S. crude oil futures        settled 0.6% lower at
$55.35 a barrel.            
    Fed Chair Jerome Powell's speech on Friday in Jackson Hole,
Wyoming, could indicate whether the U.S. central bank will
continue to cut interest rates, which could also help guide
expectations about the Bank of Canada's interest rate decision.
    "It's all like a broad turn lower in risk, stocks are lower,
crude oil is going lower, and dollar-CAD being sensitive to all
of that, is going higher," said Erik Bregar, director and head
of FX strategy at the Exchange Bank of Canada. But "it's still
very much a range trade, waiting for a clarity from Jerome
Powell."
    The Canadian dollar          was trading nearly unchanged at
1.3296 to the greenback, or 75.21 U.S. cents, at 3:17 p.m. (1917
GMT). The currency, which lost some ground it gained earlier,
was trading in a range of 1.3276 to 1.3315.
    Domestic data showed that Canadian wholesale trade increased
by 0.6% in June from May. Analysts surveyed by Reuters had
forecast a 0.3% increase.             
    Canada's retail sales data is due on Friday, with a Reuters
poll forecasting a 0.1% decrease.
    Canadian government bond prices were lower across the yield
curve, with the two-year            down 9.5 Canadian cents to
yield 1.458% and the 10-year             falling 43 Canadian
cents to yield 1.267%.

 (Reporting by Levent Uslu; Editing by Nichola Saminather and
Peter Cooney)
  
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