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CANADA FX DEBT-C$ treads water ahead of expected U.S. Fed rate hike

Published 2018-09-26, 09:20 a/m
Updated 2018-09-26, 09:30 a/m
© Reuters.  CANADA FX DEBT-C$ treads water ahead of expected U.S. Fed rate hike

* Canadian dollar at 1.2955 to greenback, or 77.19 US cents

* Price of U.S. oil falls 0.6 percent

* Canadian bond prices trade mixed across the yield curve

TORONTO, Sept 26 (Reuters) - The Canadian dollar was little changed against its U.S. counterpart on Wednesday, trading in a narrow range as oil prices fell and the U.S. dollar climbed ahead of an expected interest rate hike by the U.S. Federal Reserve.

At 8:59 a.m. (1259 GMT), the Canadian dollar CAD=D4 was nearly unchanged at 1.2955 to the greenback, or 77.19 U.S. cents.

The currency, which last Thursday touched its strongest level in more than three months at 1.2885, traded in a narrow range of 1.2945 to 1.2966.

The U.S. dollar .DXY rose against a basket of major currencies before a widely anticipated Fed rate hike priced in by investors still on edge about a trade row between the United States and China. has its own trade dispute with the United States and is in slow-moving talks to renew the North American Free Trade Agreement (NAFTA).

The country is not making concessions needed to reach a deal with the United States for a trilateral NAFTA pact and is running out of time before Washington proceeds with a Mexico-only agreement, a top U.S. official said on Tuesday. the month-end deadline for the trade talks nears, Canadian executives who hedge foreign exchange risk have been changing their strategies so their companies can profit from any possible swings in the Canadian dollar. price of oil, one of Canada's major exports, eased but was still heading for a fifth consecutive quarter of gains, driven by an impending drop in Iranian exports in the last three months of the year when global demand heats up. crude CLc1 prices were down 0.6 percent at $71.84 a barrel.

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Canadian government bond prices were mixed across the yield curve, with the 10-year CA10YT=RR rising 1 Canadian cent to yield 2.459 percent. On Tuesday, the 10-year yield touched its highest intraday in more than four months at 2.472 percent.

Bank of Canada Governor Stephen Poloz is due to speak on Thursday, while Canadian gross domestic product data for July is due on Friday.

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