CANADA FX DEBT-C$ treads lightly ahead of Greek vote, FOMC

Fri Jun 15, 2012 8:31am EDT
 
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* C$ at C$1.0242 vs US$, or 97.64 U.S. cents
    * Bond prices climb across the curve ahead of Greek vote

    By Claire Sibonney	
    TORONTO, June 15 (Reuters) - The Canadian dollar traded
little changed against the greenback on Friday as investors held
off big bets in the event of financial market turmoil as a
result of Sunday's Greek election.	
    Riskier assets rallied in the previous session after G20
officials told Reuters that major central banks stood ready to
stabilize financial markets by providing liquidity if the
election result causes any adverse fallout. 	
    But investors were still cautious heading into the weekend. 	
    "Obviously you're going to see some position squaring 
beforehand," said John Curran, senior vice president at
CanadianForex.	
   Expectations of more monetary stimulus were also encouraged
by a British plan to flood its economy with cash, and after
economic data in the United States rekindled talk of further
easing by the Federal Reserve which holds a policy meeting next
week.	
    "While all the hoopla is about Greece, I think the more
important event is going to be next week's FOMC. People are
gingerly adding risk  on the assumption the Fed will stimulate
growth," added Curran.	
    At 8:12 a.m. (1212 GMT), the Canadian dollar stood at
C$1.0242 versus the U.S. dollar, or 97.64 U.S. cents, down
slightly from Thursday's North American session close at
C$1.0238, or 97.68 U.S. cents. 	
    Curran put near-term U.S. dollar support around C$1.0150
against Canada's dollar.	
    Canadian bond prices jumped, tracking U.S. Treasuries higher
as investors positioned ahead of this weekend's Greek election.	
    Canada's two-year bond was up 9 Canadian cents to
yield 1.000 percent, while the benchmark 10-year bond
 climbed 37 Canadian cents, yielding 1.762 percent.