CANADA FX DEBT-C$ firms but trade quiet with focus on Greece

Thu Jun 25, 2015 10:09am EDT
 
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* Canadian dollar at C$1.2351 or 80.97 U.S. cents
    * Bond prices lower across the maturity curve

    TORONTO, June 25 (Reuters) - The Canadian dollar firmed
against its U.S. counterpart on Thursday, but its moves were
limited to a narrow range as there was no domestic economic data
to drive direction, while global market focus stayed riveted on
Greece.
    Markets were anxiously awaiting news on whether debt-laden
Greece and its creditors had reached an 11th-hour deal to stave
off default.
    "A lot of investors have been forced to the sidelines until
we get more clarity on what's going on with Greece," said Shaun
Osborne, chief currency strategist at TD Securities.
    "The flow of headlines overnight has dampened interest quite
significantly in the markets here."
    Osborne, who forecasts the Canadian dollar will close the
year near C$1.30 to the greenback, also noted that trading
activity was trailing off heading into the typically slow month
of July.
    
    * At 9:47 a.m. EDT (1347 GMT), the Canadian dollar 
was at C$1.2351 to the greenback, or 80.97 U.S. cents, stronger
than the Bank of Canada's official close of C$1.24, or 80.65
U.S. cents, on Wednesday.
    * The currency's strongest level of the session was
C$1.2332, while its weakest was C$1.2399.
    * U.S. consumer spending recorded its largest increase in
nearly six years in May, the latest evidence that economic
growth was picking up steam in the second quarter after a tough
first quarter. 
    * Canadian government bond prices were lower across the
maturity curve, with the two-year price down 1
Canadian cent to yield 0.607 percent and the benchmark 10-year
 falling 18 Canadian cents to yield 1.795 percent.
    * The Canada-U.S. two-year bond spread was -8.9 basis
points, while the 10-year spread was -60.1 basis points.

 (Reporting by Solarina Ho; Editing by Peter Galloway)