CANADA FX DEBT-C$ gains but move limited ahead of BoC rate decision – Today

* Canadian dollar strengthens 0.3% against the greenback

* Trades in a range of 1.3668 to 1.3736

* Price of U.S. oil falls 2.5%

* Canadian bond yields ease across curve

TORONTO, Oct 23 (Reuters) – The Canadian dollar gained
ground against its U.S. counterpart on Monday, but by a lesser
degree than some other G10 currencies as oil prices fell and
investors awaited a Bank of Canada interest rate decision.

The loonie was trading 0.3% higher at 1.3680 to the
greenback, or 73.10 U.S. cents, after moving in a range of
1.3668 to 1.3736.

“The U.S. dollar is weaker against everything. In a soft
U.S. dollar environment Canada typically lags on the crosses,”
said Marc Chandler, chief market strategist at Bannockburn
Global Forex LLC. “It’s not just that pattern but also a little
hesitancy ahead of Wednesday’s central bank meeting.”

The Canadian central bank will leave interest rates on hold
at a 22-year high of 5% on Wednesday as the economy stalls,
analysts said, though many see the bank warning that future
hikes are still possible with inflation hovering well above its
2% target.

The U.S. dollar fell against a basket of currencies
as U.S. Treasury yields retreated after the 10-year rate briefly
breached the 5% level for the first time since 2007.

Speculators have raised their bearish bets on the Canadian
dollar to the most in five months, data from the U.S. Commodity
Futures Trading Commission showed on Friday. As of Oct. 17, net
short positions had increased to 48,539 contracts from 46,489 in
the prior week.

The price of oil, one of Canada’s major exports, fell as
diplomatic efforts in the Middle East intensified in an attempt
to contain the conflict between Israel and Hamas, easing
investor concerns about potential supply disruptions.

U.S. crude oil futures < CLc1> were down 2.5% at $85.85 a
barrel, while Canadian bond yields eased across the curve,
tracking moves in U.S. Treasuries. The 10-year was
down 5.4 basis points at 4.019%.
(Reporting by Fergal Smith
Editing by Mark Potter)