CANADA FX DEBT-C$ steadies after last week's sharp drop
* Canadian dollar at C$1.0800 or 92.59 U.S. cents * Bond prices mixed, 10-yr yield at more than 1-yr low (Adds details, quotes, updates prices) By Leah Schnurr TORONTO, July 28 (Reuters) - The Canadian dollar firmed modestly against the greenback on Monday, steadying after the previous session's sharp drop, as investors positioned themselves ahead of some key economic reports on both sides of the border this week. Still, the currency did not recover very much of last week's losses, which could lead to more downside after it fell through some significant technical levels on Friday, analysts said. "We're in a bit of a holding pattern ahead of the critical economic releases this week," said Gareth Sylvester, director at Klarity FX in San Francisco. The Canadian dollar-U.S. dollar pairing faces key technical resistance at the C$1.0830 area and a break through that could take it toward C$1.0950, Sylvester said. "The fact that (U.S. dollar-Canadian dollar) held onto its gains and hasn't retreated is a good indication that traders are willing to hold on to their U.S. dollar long positions and not just drop the market, and get in and out and make a quick buck," he said. The Canadian dollar ended the North American session at C$1.0800 to the greenback, or 92.59 U.S. cents, stronger than Friday's close of C$1.0814 or 92.47 U.S. cents. After last week's relatively quiet domestic calendar, investors will get a look at more economic data in the coming days, including Canadian economic growth for May and producer prices for June. But the bigger focal point this week will be the United States, where markets will get the first reading of second-quarter growth figures and the July unemployment report, as well as a Federal Reserve meeting. The U.S. gross domestic product report could have the biggest impact on markets, with risk to the downside if the economy doesn't achieve the 3 percent growth rate economists forecast, said Scott Smith, senior market analyst at Cambridge Mercantile Group in Calgary. While that could hurt the U.S. dollar, it could be a benefit to the loonie. "If we do see something come in lower than expected, I don't think markets are necessarily prepared for that," Smith said. Canadian government bond prices were mixed, with the two-year off 1 Canadian cent to yield 1.088 percent. The benchmark 10-year added 2 Canadian cents to yield 2.117 percent, a more than one-year low. (Editing by Peter Galloway)
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