CANADA FX DEBT-C$ weighed down by weak data, Europe caution
* C$ at C$0.9999 vs US$, or $1.0001
* European PMI, China industrial data set tone
* Bonds prices largely flat
By Jennifer Kwan
TORONTO, Feb 22 (Reuters) - The Canadian dollar retreated against its U.S counterpart on Wednesday as weak euro zone and China data sapped investor appetite for riskier assets.
European February PMIs came in weaker than expected and a preliminary survey of China's industrial activity showed the overall manufacturing sector contracting for a fourth-straight month. Both sets of data helped to push down global equity markets. [ID:
Growing worries that Greece will struggle to meet the demands of its new bailout deal added to the uncertain tone for shares and the euro, while the prospect of weaker demand in both Europe and Asia sent oil and metals markets lower.
"Markets have a general cautious tone to them," said David Watt, senior currency strategist at RBC Capital Markets.
"The foreign exchange market theme has been largely one where you see some domestic stories playing out, and we haven't seen much of a domestic story for Canada with the recent data." Continued...