* Canadian dollar at C$1.3163, or 75.97 U.S. cents
* Bond prices higher across the maturity curve
(Adds details on U.S. Federal Reserve, quotes, updates prices)
TORONTO/OTTAWA, Oct 26 (Reuters) - The Canadian dollar was
little changed against the greenback on Monday ahead of U.S. and
Japan central bank decisions on interest rates, after last
week's volatility left the currency at a three-week low.
The U.S. Federal Reserve is expected to leave rates
unchanged this week, but investors will look for any hints as to
whether the central bank is still on track to tighten credit by
the end of the year.
The Bank of Japan will meet for a rate review on Friday.
While it is set to cut its price forecasts, many officials
prefer to hold off expanding its stimulus program.
The Canadian dollar rallied through the first half of
October as investors expected the Fed to hold off on a rate
hike.
But the currency has given up ground in recent sessions and
that the rally is likely done for the time being, said Scott
Smith, senior market analyst at Cambridge Global Payments in
Toronto.
"I think really we've seen a little bit of exhaustion, price
action has been quiet to start the week," said Smith.
"The overall larger trend for the Canadian dollar is that
we're likely to go lower," he said.
The Canadian dollar CAD=D4 ended the North American
trading session at C$1.3163 to the greenback, or 75.97 U.S.
cents, modestly stronger than Friday's close of C$1.3175, or
75.90 U.S. cents.
The currency hit a three-week low on Friday after weak
domestic inflation data.
A gain in oil prices had helped bolster the loonie earlier
in the session, but U.S. crude CLc1 reversed direction to
settle down 62 cents at $43.98 a barrel on worries that
oversupply in oil products would swell. O/R
Canadian government bond prices were higher across the
maturity curve, with the two-year CA2YT=RR price up 3 Canadian
cents to yield 0.520 percent and the benchmark 10-year
CA10YT=RR rising 58 Canadian cents to yield 1.443 percent.
The Canada-U.S. two-year bond spread was -12.1 basis points,
while the 10-year spread was -61.5 basis points.