CANADA FX DEBT-C$ little changed as Poloz, Fed in view

Reuters

* C$ at C$1.0443 vs US$, or 95.76 U.S. cents

* Stephen Poloz on tap, Fed meeting eyed

* Canadian bond prices mixed across the curve

By Leah Schnurr

TORONTO, Oct 29 (Reuters) - The Canadian dollar was little

changed against the greenback on Tuesday as it continued to

consolidate after its recent drop, while investors were wary of

taking big bets heading into the U.S. Federal Reserve's two-day

policy meeting.

Markets will also be focused on comments from Bank of Canada

Governor Stephen Poloz later on Tuesday. Poloz and Senior Deputy

Governor Tiff Macklem will appear before lawmakers at 12:00 pm

ET (1600 GMT).

The Canadian central bank last week surprised markets when

it dropped any mention of eventual rate increases from its

latest policy statement, leading to expectations among analysts

that rates will stay low for longer.

The shift in policy took the Canadian dollar to a

1-1/2-month low by late last week.

"There's a lot of risk on the table," said Camilla Sutton,

chief currency strategist at Scotiabank in Toronto.

The Canadian dollar was at C$1.0443 versus the

greenback, or 95.76 U.S. cents, slightly stronger than Monday's

close of C$1.0445, or 95.74 U.S. cents.

The Fed will release a statement on Wednesday at the end of

its meeting, though the U.S. central bank was expected to hold

the line on its economic stimulus efforts.

The Fed surprised markets in September with its decision to

continue its bond-buying program at a $85 billion a month pace,

rather than trimming the amount as had been expected. The

Canadian dollar touched a three-month high following that

announcement, but has weakened since.

"Obviously their communication style has come under some

scrutiny since the decision in September to push off tapering,

so we'll have an opportunity in terms of the statement to get a

little more clarity in terms of what the Fed is really looking

at," said Sutton.

Canadian government bond prices were mixed across the

maturity curve. The two-year bond was off half a

Canadian cent to yield 1.096 percent, and the benchmark 10-year

bond added 1 Canadian cent to yield 2.430 percent.

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