CANADA FX DEBT-C$ firms; focus still on Europe

Thu Jun 14, 2012 9:25am EDT
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* Firms to C$1.0252, or 97.54 U.S. cents
    * Bond prices mostly lower

    By Allison Martell	
    TORONTO, June 14 (Reuters) - Canada's dollar firmed against
the greenback on Thursday, recovering from a late slide that
mirrored U.S. equity markets on Wednesday, but investors
remained focused on Sunday's election in Greece.	
    Global markets are expected to be choppy as traders position
ahead of the crucial vote, and on broader worries about the euro
zone debt crisis. 	
    Adam Cole, head of foreign exchange strategy at Royal Bank
of Canada in London, said he did not see the morning's Canadian
and U.S. data or news out of Europe materially affecting
Canada's currency.	
    "I think there's a reluctance for anyone to take a strong
view ahead of the potentially very important events at the
weekend, and the closer we get to that the less appetite there
is to position one way or the other," said Cole.	
    At about 9:06 a.m. (1306 GMT) Canada's dollar was at
C$1.0252, or 97.54 U.S. cents, compared with Wednesday's close
at C$1.0292, or 97.16 U.S. cents. The currency was little
changed through much of Wednesday's session, but weakened
heading into the close.	
    Cole saw the dollar continuing in the week's range through
Friday, between about C$1.02 and C$1.032.	
    Data released on Thursday showed that the price of new homes
in Canada rose 0.2 percent in April, slightly below the 0.3
percent rise forecast by analysts in a Reuters poll.
    The number of Americans filing new claims for unemployment
benefits unexpectedly rose last week, the latest data pointing
to sluggish conditions in the United States. 	
    Canada's bond prices were mostly lower. Canada's two-year
bond fell 3 Canadian cents to yield 1.044 percent,
while the benchmark 10-year bond fell 15 Canadian
cents, yielding 1.784 percent.