CANADA FX DEBT-C$ halts slide, Greece concerns weigh

Wed Mar 7, 2012 8:39am EST
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* C$ at C$1.0012 vs US$, or 99.88 U.S. cents
    * Greek debt swap deal concerns weigh
    * Bond prices mixed

    By Jon Cook	
    TORONTO, March 7 (Reuters) - The Canadian dollar was
little changed against the U.S. currency on Wednesday
morning as markets braced for the outcome of the Greek debt
restructuring deal, and evidence mounted of a weaker outlook for
the global economy. 	
    Greek private creditors have until late Thursday to say
whether they will take part in a bond swap deal which would
enable Greece to make a debt repayment on March 20, sparking
concerns about a chaotic default if participation is low.
    Global economic concerns have intensified this week after a
slowdown in growth outlook from China and Brazil and fears that
Europe is headed towards another recession.	
    "The market got thrown a little curve ball with the
downgrade in Chinese growth," said Shane Enright, executive
director of foreign exchange sales at CIBC World Markets.
"That's been primarily what's been responsible for most of the
weakness in the commodities currencies."	
    At 8:22 a.m. (1322 GMT), the Canadian dollar stood
at C$1.0012 against the U.S. dollar, or 99.88 U.S. cents, little
changed from Tuesday's North American session close at C$1.0006
against the U.S. dollar, or 99.94 U.S. cents. 	
    The Canadian dollar has lost more than a cent against the
greenback this month, tumbling 1.2 percent from its February
close at C$0.9895 against the U.S. dollar, a five-month high.	
    Apart from Greece, currency traders were looking ahead to
Chinese inflation and U.S. jobs data on Friday.	
    "In that respect, you've got important news from all three
of the major regions over the next 24 hours," said Enright.	
    "The market will want to digest all of that before it
decides whether this correction is just an alleviation of what's
been pretty much a one-way directional bet on risk since January
1, or whether it's the start of a larger correction."	
    Also on Thursday, the Bank of Canada will report results
from its next policy meeting, where it is expected to keep the
overnight interest rate at its current 1 percent. 	
    Enright said that, for the day, the Canadian currency should
hold within a tight range between C$.9980 on the high end and
C$1.0060 on the low side.	
    Canadian bond prices were mixed, with the two-year bond
 up a Canadian cent to yield 1.076 percent. The
10-year bond fell two Canadian cents to yield 1.938