CANADA FX DEBT-C$ ends weaker as Greek relief fades
* C$ at C$1.0241 vs US$, 97.65 U.S. cents * Greek election relief rally short-lived * Bond prices mixed By Andrea Hopkins TORONTO, June 18 (Reuters) - The Canadian dollar ended weaker against its U.S. counterpart on Monday, as relief at Greece's pro-bailout election results turned to worry over the broader euro zone debt crisis. Greek voters gave a majority on Sunday to parties that support the country's economic bailout, easing worries that the single currency bloc might break apart, but not fears about other indebted countries in the euro zone. "The problem is nothing was really resolved over the weekend so we're not going to get any definite direction of where the euro is going," said David Bradley, director of foreign exchange trading at Scotiabank. "If something is resolved we could break out and start trading in one direction or another but it doesn't seem like that is going to happen anytime soon." The euro fell from a one-month high against the dollar as surging Spanish borrowing costs fueled fears of an escalating euro zone debt crisis and overshadowed the Greek elections. "The underlying structural negatives in Europe are still very large," said Jeremy Stretch, head of foreign exchange strategy at CIBC World Markets in London. "The relief rally proved, very much like the Spanish relief rally this time last week, to be very temporary." The Canadian dollar ended the North American session at C$1.0241 versus the U.S. dollar, or 97.65 U.S. cents, slightly weaker than Friday's close at C$1.0222, or 97.83 U.S. cents. Scotiabank's Bradley said he expected the currency to hold to a tight range, with the Canadian dollar perhaps a little weaker in the days ahead. "You're going to see dollar-Canada continuing to trade in the C$1.02 to C$1.04 range," Bradley said. "The Canadian dollar seems to be pretty resilient, having traded up to C$1.04 last week and now at the stronger end of that range." Investors were looking ahead to a two-day meeting of Federal Reserve policymakers that starts on Tuesday for signs of new stimulus measures. Market players also awaited news from Mexico, where world leaders at a G20 summit were set to put pressure on the euro zone to outline a lasting strategy to save the single currency. Canadian bond prices were mixed. Canada's two-year bond fell 4 Canadian cents to yield 0.982 percent, while the benchmark 10-year bond rose 5 Canadian cents, yielding 1.718 percent.
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