CANADA FX DEBT-Loonie weakens amid caution, eyes on Fed
* Canadian dollar at C$1.0645 or 93.94 U.S. cents
* Bond prices lower across the maturity curve
TORONTO, Dec 18 (Reuters) - The Canadian dollar weakened
against the greenback on Wednesday amid investor caution ahead
of a statement from the Federal Reserve later in the day that
could signal the start of the U.S. central bank's withdrawal of
its economic stimulus.
The Fed will conclude a two-day policy meeting with a
statement at 2:00 p.m. EST (1900 GMT), followed by a news
conference by Chairman Ben Bernanke shortly after.
The Fed is currently buying $85 billion a month in bond
purchases to keep borrowing costs low and boost the economy.
Recent better-than-expected economic data and a budget deal in
Washington has led some investors to believe the Fed may be
comfortable with the idea of trimming its market-friendly bond
purchases sooner rather than later.
Markets have been focused on this meeting for weeks and
expectations are divided over whether that reduction will be