CANADA FX DEBT-C$ trades sideways after ECB talk
* C$ at C$1.0081 vs US$, or 99.20 U.S. cents * Bond prices retreat across the curve By Claire Sibonney TORONTO, July 27 (Reuters) - The Canadian dollar was little changed against its U.S. counterpart on Friday amid quiet trade and fresh doubts about whether the European Central Bank would take bold action to tackle the region's sovereign debt crisis. European equities rose and peripheral bond yields fell on growing expectations of ECB measures to bring down Spanish and Italian borrowing costs, but concerns about possible German opposition to such a move kept risk appetite in check. "In general commodity currencies are slightly better bid this morning ... so the market is continuing to believe the ECB is going to do what it takes, but I think there hasn't been much follow through and I think the reason for that is they'd like to see more action," said Blake Jespersen, managing director of foreign exchange sales at BMO Capital Markets. Euro zone governments and the European Central Bank are preparing to intervene on financial markets, French daily Le Monde reported, citing unnamed sources. The report came a day after ECB President Mario Draghi boosted risk assets across the globe with his pledge do whatever it takes within the bank's mandate to defend the single currency. At 8:07 a.m. (1207 GMT), the Canadian dollar stood at C$1.0081 versus the greenback, or 99.20 U.S. cents, up slightly from Thursday's North American's session close at C$1.0096 versus the U.S. dollar, or 99.05 U.S. cents. "It's still fairly rangebound, lighter volumes, and I think the market in general is just waiting for more clarity from the ECB in terms of what they have in mind to sustain the euro at whatever cost," added Jespersen. He noted that trading was particularly light in London ahead of the opening ceremonies for the Olympic Games later in the day. A reading of U.S. second quarter growth due at 8:30 a.m. is expected to provide further direction for currency markets. Jespersen saw immediate Canadian dollar resistance around C$1.0050 and support near C$1.0110-C$1.0120. Canadian bond prices moved lower across the curve with the two-year bond off 7 Canadian cents to yield 1.053 percent and the benchmark 10-year bond down 44 Canadian cents lower to yield 1.692 percent.
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