CANADA FX DEBT-C$ edges higher as hope for Greece rises
* C$ rises to C$0.9802 to the U.S. dollar, or $1.0202
* Down 0.2 percent on the week
* Bond prices flat to lower
* Risk sentiment rises on hints of Greece rescue plan (Adds details)
TORONTO, June 17 (Reuters) - The Canadian dollar edged higher against the greenback on Friday as news of an outline agreement to aid debt-burdened Greece lifted investor confidence.
But recent lackluster U.S. economic data, including Friday's U.S. consumer confidence data, have weighed on the Canadian dollar, whose health is heavily linked to the U.S. economy because of the close trading relationship between the two countries.
"There was some relief in terms of the European situation," said Paul Ferley, assistant chief economist at Royal Bank of Canada. "We did give back a bit of that with some of the disappointment with the U.S. confidence weakening off."
The currency CAD=D4 ended the day at C$0.9802 to the U.S. dollar, or $1.0202, firming from Thursday's North American finish of C$0.9832 to the U.S. dollar, or $1.0171. It finished the week down 0.2 percent.
During the day it rose as high as C$0.9776 to the U.S. dollar.
"We're still really in a broad range here. Probably between C$0.9700 and C$0.9900," said Shaun Osborne, chief currency strategist at TD Securities. "I still think the underlying trend is still a bit more towards Canadian dollar softness."
He said that risk assets are not performing well and that the Canadian dollar is a barometer for risk sentiment.
"I think the tone of the U.S. numbers is still quite soft and soft numbers in the U.S. typically translate into weaker Canadian dollar performance overall," Osborne said.
U.S. consumer sentiment worsened this month on renewed concerns about the outlook for the economy, with gloom about job and income prospects persisting. [ID:nN17179878]
In Greece, Prime Minister George Papandreou appointed a new finance minister in an effort to push through harsh economic reforms after weeks of public protests. [ID:nLDE75G0CY] [ID:nLDE75G1DB]
Meanwhile, the leaders of France and Germany said they had an reached an outline agreement to save Greece from debt default and avert another global crisis, but investor anxiety looked likely to persist until a full accord is announced. [MKTS/GLOB]
Canadian bond prices were flat to lower across the curve, as investors dipped their toes back into riskier assets. [US/]
While Toronto's main stock market index lost ground and closed at its lowest level in seven months, U.S. stock indexes were mostly on higher ground.
The two-year bond CA2YT=RR was down 1 Canadian cent to yield 1.495 percent, while the 10-year bond CA10YT=RR slipped 15 Canadian cents to yield 2.946 percent. (Reporting by Ka Yan Ng and Solarina Ho; editing by Peter Galloway)
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