CANADA FX DEBT-C$ dampened by crude, thin volumes; Greece talks down to wire

Fri Jun 26, 2015 9:34am EDT
 
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* Canadian dollar at C$1.2393, or 80.69 U.S. cents
    * Bond prices mostly lower across the maturity curve

    TORONTO, June 26 (Reuters) - The Canadian dollar slipped
against its U.S. counterpart on Friday, squeezed by softer crude
oil prices and a firmer greenback as liquidity thinned ahead of
next week's U.S. and Canadian holidays.
    Talks between Greece and its creditors to avert a debt
default were coming down to the wire, with last-ditch efforts
planned for the weekend. The uncertainty surrounding the outcome
was the focus for global investors, with currency and bond
markets taking a cautious stance.  
    
    * At 9:12 a.m. EDT (1312 GMT), the Canadian dollar 
traded at C$1.2393 to the greenback, or 80.69 U.S. cents, softer
than the Bank of Canada's official close of C$1.2323, or 81.15
U.S. cents, on Thursday.
    * The currency's strongest level of the session was
C$1.2325, while its weakest was C$1.2394.
    * Crude prices fell, but kept within recent trading ranges,
as investors awaited the outcome over Greece as well as nuclear
talks in Iran that could result in a surge in oil exports by the
crude-producing country. U.S. crude was down 1.24 percent
to $58.96 a barrel, while Brent crude lost about 1
percent to $62.59. 
    * The Canadian dollar was expected to trade between C$1.2325
and C$1.2390 against the U.S. dollar on Friday, according to
National Bank Financial, which noted thinning liquidity could
result in bigger moves coming from relatively small volumes.
    * No significant North American data was expected on Friday.
Canadian April GDP data is due next Tuesday and U.S. employment
figures will be out next Thursday.  
    * Next week is otherwise due to be quiet, with the Canada
Day holiday on Wednesday and the U.S. Fourth of July holiday on
Friday.
    * Canadian government bond prices were mostly lower across
the maturity curve, with the two-year price down 4
Canadian cents to yield 0.639 percent and the benchmark 10-year
 falling 55 Canadian cents to yield 1.875 percent.
    * The Canada-U.S. two-year bond spread was -7.10 basis
points, while the 10-year spread was -58.1 basis points.

 (Reporting by Solarina Ho; Editing by Jeffrey Benkoe)