CANADA FX DEBT-C$ rally stalls with Greek debt talks

Mon Feb 6, 2012 4:49pm EST
 
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(Adds details, analyst comments)

* C$ at C$0.9955 to the US$, or $1.0045

* Greek debt worries weigh on market

* Bond prices mostly higher

By Jon Cook

TORONTO, Feb 6 (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Monday, pulling back from a 3-month high hit Friday, as Greek debt worries mounted after ongoing talks with European policymakers to avoid a messy default missed another deadline.

A European Commission spokesman said Greece had already gone beyond the deadline for finalising talks on the second financing package from the euro zone and the International Monetary Fund, and Athens needed urgently to take decisions.

"Canada did weaken off along with most of the other currencies against the (U.S.) overnight, but the North American session has been absolutely sideways," said Shane Enright, executive director of foreign exchange sales at CIBC World Markets.

Enright added that with last week's disappointing Canadian GDP and jobs numbers there was little domestic news that supported increased buying of the Canadian dollar and it would likely take a Greek debt deal to move the currency higher.   Continued...