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CANADA FX DEBT-Canadian dollar steadies as investors await Fed rate decision

Published 2020-09-14, 04:40 p/m
© Reuters.

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* Canadian dollar trades near flat against the greenback

* Loonie trades in a range of 1.3154 to 1.3196

* Price of U.S. oil settles 0.2% lower

* Canadian bond yields edge higher across much of the curve

By Fergal Smith

TORONTO, Sept 14 (Reuters) - The Canadian dollar was little changed against its U.S. counterpart on Monday as investors turned attention to a Federal Reserve interest rate decision later in the week, although it fell against most other G10 currencies.

The Canadian dollar CAD= was trading nearly unchanged at 1.3179 to the greenback, or 75.88 U.S. cents. The currency, which fell last week for the first time in six weeks, traded in a range of 1.3154 to 1.3196.

The loonie was one of only three G10 currencies not to gain ground against the U.S. dollar. The others were the Swedish crown SEK= and the Norwegian crown NOK= .

The safe-haven greenback .DXY fell against a basket of major currencies as positive news about a COVID-19 vaccine and a wave of merger and acquisition deals lifted the mood in global equity markets. waiting to see what happens with the Fed and really what their view is on the outlook for the U.S. economy," said Rahim Madhavji, president at KnightsbridgeFX.com.

The Fed rate announcement is due on Wednesday. Canada sends about 75% of its exports to the United States, including oil.

U.S. crude oil futures CLc1 settled 0.2% lower at $37.26 a barrel amid concerns about a stalled global economic recovery and with Libya poised to resume production. have cut their bearish bets on the Canadian dollar to the lowest in six weeks, data from the U.S. Commodity Futures Trading Commission showed on Friday.

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Canada's inflation report for August is due on Wednesday, while the July retail sales report is set for Friday. The data could help guide expectations for economic recovery.

Canadian government bond yields were slightly higher across much of a steeper curve on Monday. The 10-year CA10YT=RR rose more than half a basis point to 0.556%.

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