CANADA FX DEBT-C$ backs off parity, bonds little changed
* C$ falls to 99.61 U.S. cents
* Bonds lower
* Canada housing starts fall greater-than-expected 9.2 pct
TORONTO, Nov 8 (Reuters) - The Canadian dollar was slightly weaker against the U.S. currency on Monday, unable to hold above parity as commodity prices softened and euro zone peripheral debt fears resurfaced.
The Canadian dollar remained soft after Canadian housing starts fell more than than expected, down 9.2 percent to 167,900 units in October from a downwardly revised 185,000 units in September. [ID:nHND005517] ECONCA
Meanwhile, euro zone peripheral debt concerns reemerged and weighed on the euro, while Friday's U.S. jobs data continued to lend support to the greenback. Commodity prices were also a little weaker, with the price of crude oil, often a key driver of the currency, down about 0.4 percent at $86.50 per barrel.
The Canadian dollar reached as high as 99.93 Canadian cents to the U.S. dollar, or $1.0007, in the overnight session, then retreating to as low as C$1.0052 to the U.S. dollar, or 99.48 U.S. cents.
After last week's bustle of several monetary policy decisions, including the U.S. Federal Reserve's closely watched stimulus announcement, the week features fewer high profile events.
"It's relatively quiet. We had a lot to digest last week. Markets are opening little changed in bonds, and the currency continues to hover around parity and can't get through with any conviction," said Mark Chandler, head of Canadian fixed income and currency strategy,
"I think it will really depend on whether there's a rethink of all the positive risk-on action in the aftermath of (the Fed's quantitative easing)."
Still to come this week, September figures for the new housing price index and trade, while Bank of Canada Governor Mark Carney will be speaking in Geneva on Canada and global financial reform on Tuesday at at 12:15 p.m. EST (1715 GMT).
Traders will also be monitoring headlines ahead of the Group of 20 meeting this week in Seoul. The G20 summit has been pitched as a chance for leaders of the countries that account for 85 percent of world output to prevent "currency wars" from spreading and becoming a rush to protectionism that could imperil the global recovery. [ID:nTOE69K01G]
At 8:23 a.m. (1323 GMT), the Canadian dollar was at C$1.0039 to the U.S. dollar, or 99.61 U.S. cents, down from Friday's North American close at C$1.0004 to the U.S. dollar, or 99.96 U.S. cents.
The two-year bond CA2YT=RR was off 3 Canadian cents to yield 1.490 percent, while the 10-year bond CA10YT=RR slipped 12 Canadian cents to yield 2.869 percent. (Reporting by Ka Yan Ng; Editing by Theodore d'Afflisio)
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